Montana radiologists, Blues plan settle monopoly lawsuit

Antitrust lawyers had watched the case, which threatened to take away physicians' right to not contract with a health plan.

By Robert Kazel, AMNews staff. April 4, 2005.

A radiology practice accused by BlueCross BlueShield of Montana of being a "predatory monopoly" after the physicians dropped out of its network won't have to go out of business, pay damages or rejoin the health plan, under a settlement reached in March.

The physicians of Missoula Radiology, which the Blues plan sued in September 2004 for alleged antitrust violations, did agree to refrain from entering into exclusive contracts with Missoula's two hospitals. But the radiologists did not have to admit to any past anticompetitive actions.

The settlement grew out of a negotiating session between the radiology group, the Blues plan and a court-approved mediator, that took place in early February.

The case, filed in U.S. District Court in Butte, Mont., was being watched closely by health and antitrust lawyers because of the possibility that a successful outcome for the Blues might encourage plans elsewhere to use antitrust laws against large specialty groups that do not wish to join a managed care network.

Donald J. Palmisano, MD, immediate past president of the AMA, applauded the terms of the settlement. "It's the AMA's opinion that it's a victory for the physicians involved," Dr. Palmisano said. "The doctors dropped out of BlueCross. ... Nowhere in the consent decree does it say that the physicians have to join the BlueCross network."

The AMA and State Medical Societies Litigation Center helped advise and fund the Missoula radiologists in the early stage of their defense.