Antitrust Partner Lee Simowitz was quoted in a Modern Healthcare article discussing U.S. Justice Department antitrust chief Christine Varney, who will resign her federal job August 5, 2011.
Varney oversaw an increase in scrutiny on healthcare companies during an era of sweeping consolidation and reform. As one defining example, the article cites the Justice lawsuit filed against Blue Cross and Blue Shield of Michigan, a case concerning allegations that a dominant player in a market was using restrictive provisions in provider contracts—so-called “most favored nation” provisions—to drive up costs and restrict business opportunities for competitors.
Antitrust officials have since acknowledged investigations of similar contract price provisions in half a dozen other states. “It’s not the first such case the division has brought, but it’s been awhile,” said Simowitz.
Simowitz’s quote appeared on July 11, 2011.