Houston Hospitals embroiled in suit over Anti-Competitive Practices

Posted by lukegilman

June 20, 2007

The now defunct Houston Town & Country Hospital has hired noted Houston Trial Attorney Rusty Hardin to sue the large non-profit Memorial Hermann Healthcare System for interfering with its ability to work with insurers, driving it out of business.

For news coverage see Houston Chronicle: Hospital lawsuits attract big legal talent, ABC 13: Two Houston hospitals duke it out in court, Isiah Carey’s Insite: IT’S GOING TO BE AN UGLY BATTLE: HOSPITAL VERSUS HOSPITAL WITH RUSTY HARDIN THROWN INTO THE MIX!

According to the Chronicle

Hardin obtained an internal AETNA Insurance e-mail which he says supports his clients’ claims. The email states quote: “If AETNA contracts with Town and Country, Memorial Hermann will demand a 25% rate increase.” Later it says, “This is an extremely hot issue with Memorial Hermann management…”

Memorial Hermann filed suit in federal court in response and has asked the judge “to find it is free to enter into exclusive or semi-exclusive contracts with insurers, even if they would preclude the smaller, privately owned hospital from contracting with those health insurers.”

On a somewhat sinister note, it was Memorial Hermann that acquired Town and Country after it closed. Houston Business Journal: Town & Country Hospital shuts doors, lays off employees.

Hardin, who made his bones as a Harris County Prosecutor for 15 years, never strays far from the limelight. His exploits have been well chronicled here and here.

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