Boffa Surgical Group LLC v. Managed Healthcare Associates Ltd.

2015 IL App (1st) 142984, 47 N.E.3d 569
CourtAppellate Court of Illinois
DecidedDecember 23, 2015
Docket1-14-2984
StatusUnpublished
Cited by7 cases

This text of 2015 IL App (1st) 142984 (Boffa Surgical Group LLC v. Managed Healthcare Associates Ltd.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boffa Surgical Group LLC v. Managed Healthcare Associates Ltd., 2015 IL App (1st) 142984, 47 N.E.3d 569 (Ill. Ct. App. 2015).

Opinion

2015 IL App (1st) 142984

No. 1-14-2984

FIFTH DIVISION December 23, 2015

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT ______________________________________________________________________________

BOFFA SURGICAL GROUP LLC, JAMES BOFFA, ) Appeal from the and ANDREW AGOS, ) Circuit Court of ) Cook County. Plaintiffs-Appellants, ) ) v. ) No. 11 L 13125 ) MANAGED HEALTHCARE ASSOCIATES LTD., and ) SWEDISH COVENANT MANAGED CARE ALLIANCE, ) Honorable ) Ronald Bartkowicz, Defendants-Appellees. ) Judge Presiding. ______________________________________________________________________________

JUSTICE LAMPKIN delivered the judgment of the court, with opinion. Justices Gordon and Palmer concurred in the judgment and opinion.

OPINION

¶1 Plaintiffs Boffa Surgical Group LLC, Dr. James Boffa, and Dr. Andrew Agos (collectively,

the Boffa Group) were not asked to participate in managed care groups at a hospital where they

had staff privileges. The Boffa Group sued defendants Managed Healthcare Associates Ltd.

(MHCA) and Swedish Covenant Managed Care Alliance (SCMCA), alleging antitrust violations

and tortious interference with prospective economic advantage. The circuit court dismissed the

Boffa Group’s amended complaint for failure to state a cause of action, and the Boffa Group

appealed. No. 1-14-2984

¶2 We affirm the judgment of the circuit court. We hold that the circuit court properly

dismissed the Boffa Group’s claim that defendants violated Illinois antitrust law because, without

something more, a staffing pattern dispute at one hospital does not cause an unreasonable restraint

of trade within the ambit of the antitrust laws. The circuit court also properly dismissed the Boffa

Group’s claim of tortious interference with prospective economic advantage because they failed to

allege defendants engaged in conduct directed at a specific third party.

¶3 I. BACKGROUND

¶4 Plaintiff Boffa Surgical Group LLC is a medical group comprised of general surgeons

licensed to practice medicine in Illinois, and plaintiffs Dr. Boffa and Dr. Agos are two of its

general surgeons. Defendant MHCA is an independent practice association that arranges for the

delivery of health care services to individuals covered by various health plans. Defendant SCMCA

is a physician hospital organization. MHCA does credentialing for SCMCA. Both MHCA and

SCMCA provide to the public at Swedish Covenant Hospital what are generally known as

healthcare maintenance and management association services. The Boffa Group was not asked to

be participants or physician members in MHCA and SCMCA. However, the Boffa Group had

privileges to practice medicine, and did practice medicine, at Swedish Covenant Hospital. The

Boffa Group also practiced medicine at other facilities in Illinois.

¶5 In December 2011, the Boffa Group sued defendants, alleging they engaged in conduct that

served an anti-competitive objective in violation of Illinois antitrust law and interfered with

plaintiffs’ prospective economic advantage. The Boffa Group amended its complaint in March

2012 and alleged that, although they had privileges and continued to practice at Swedish Covenant

Hospital, defendants unreasonably restrained competition at the hospital by excluding the Boffa

Group from defendants’ network even though the number of physicians in that network was not

-2- No. 1-14-2984

adequate to provide the necessary services for public health. The Boffa Group alleged this

anticompetitive limitation of membership to a select group limited the number of physicians who

could provide services to the hospital’s patients, limited referrals by physicians with privileges at

the hospital, limited the public’s access to the Boffa Groups’ services, and intentionally prevented

the Boffa Group from obtaining prospective business at the hospital. The Boffa Group alleged

such practices had prevented one patient from receiving prompt treatment and resulted in that

patient’s death.

¶6 Defendants moved the court to dismiss the amended complaint under section 2-615 of the

Code of Civil Procedure (Code) (735 ILCS 5/2-615 (West 2010)), contending the factual

allegations were insufficient to establish the elements of an antitrust violation or tortious

interference with prospective economic advantage. Defendants argued that the Boffa Group could

not allege an unreasonable restraint on the relevant market where they continued to provide

services at Swedish Covenant Hospital and various other institutions located in Illinois and there

were 21 other hospitals or medical centers within 20 miles of Swedish Covenant Hospital.

¶7 After the parties briefed the motion to dismiss, the circuit court granted the motion in favor

of defendants on November 6, 2012. Concerning the antitrust claim, the court concluded there

were inadequate grounds for the court to interfere with the hospital’s staffing decisions and the

Boffa Group failed to allege an unreasonable restraint of trade where they still practiced medicine

in the relevant marketplace. Concerning the tortious interference claim, the court found the Boffa

Group failed to allege the necessary element that defendants interfered with action directed toward

a specific third party, namely, the patients.

¶8 The Boffa Group moved to vacate and set aside the dismissal order, contending the court

erred in its application of the case law concerning the antitrust claim. The Boffa Group also

-3- No. 1-14-2984

contended they would be able to state a claim for tortious interference with prospective economic

advantage if they were able to file a second amended complaint under seal. After the parties

briefed the motion to vacate and set aside the dismissal order, the circuit court denied that motion

on April 5, 2013. Thereafter, the Boffa Group filed an emergency renewed motion to vacate and

set aside the dismissal order, seeking leave to file an amended complaint on the tortious

interference claim. Citing statutory confidentiality provisions, the Boffa Group asserted that filing

the amended complaint under seal would allow defendants to defend on the issue of specific

patients without publicly disclosing those patients. The circuit court granted the Boffa Group’s

motion and gave them leave until May 27, 2013 to file an amended complaint with respect to the

tortious interference claim only.

¶9 After that deadline lapsed, the Boffa Group filed a motion for leave to file their complaint

under seal. After hearing oral argument, the circuit court continued the motion to July 10, 2013, at

which time the Boffa Group was to either have written consent from the patients to file the

complaint or prove to the court that written consent was not required. That deadline lapsed, and the

court gave the Boffa Group until August 12, 2013 to file an amended complaint under seal.

¶ 10 On September 12, 2013, the Boffa Group sought leave to file their amended complaint

under seal, seeking an extension of time due to a docketing error. The circuit court allowed them to

file an amended complaint instanter but denied their request to file it under seal, finding that they

had failed to show a need for filing the complaint under seal. On September 24, 2013, the Boffa

Group moved the court to reconsider allowing them to file the complaint under seal. They stated

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2015 IL App (1st) 142984, 47 N.E.3d 569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boffa-surgical-group-llc-v-managed-healthcare-associates-ltd-illappct-2015.