A federal judge has dismissed antitrust claims brought by Neurological Surgery Practice of Long Island against Empire Healthchoice HMO and Empire Healthchoice Assurance.
The Rockville Centre, N.Y.-based neurosurgery practice alleged the insurers violated the Sherman Act and New York’s Donnelly Act through agreements with hospitals that reimbursed neurological services at rates below the cost of providing them, according to court documents reviewed by Becker’s. The practice argued the arrangements disadvantaged freestanding neurosurgery groups and contributed to consolidation in the New York City market.
A judge for the U.S. District Court for the Eastern District of New York granted the defendants’ motion to dismiss Aug. 14, finding the practice had not plausibly alleged that the agreements unreasonably restrained trade. The court said the complaint did not sufficiently connect Empire’s reimbursement arrangements to reductions in neurosurgery output, higher prices or lower quality of care.
The claims were dismissed without prejudice. The practice has 30 days to seek permission to file another amended complaint; otherwise, judgment will be entered.
Becker’s reached out to Empire Healthchoice and Neurological Surgery Practice of Long Island for comment and will update this story if comment is received.
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