State v. Franciscan Health Sys.

388 F. Supp. 3d 1296
CourtDistrict Court, W.D. Washington
DecidedMarch 1, 2019
DocketCASE NO. C17-5690 BHS
StatusPublished

This text of 388 F. Supp. 3d 1296 (State v. Franciscan Health Sys.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Franciscan Health Sys., 388 F. Supp. 3d 1296 (W.D. Wash. 2019).

Opinion

BENJAMIN H. SETTLE, United States District Judge

This matter comes before the Court on Defendants Franciscan Health System, Franciscan Medical Group (collectively "Franciscan"), WestSound Orthopaedics, P.S. ("WSO"), and The Doctors Clinic's ("TDC") motion for partial summary judgment. Dkt. 180. The Court has considered the pleadings filed in support of and in opposition to the motion and the remainder of the file and hereby grants the motion as to Count 2, violation of Section 7 of the Clayton Act, and denies the motion as to Count 1, the rule of decision for violation of Section 1 of the Sherman Act, for the reasons stated herein.

I. BACKGROUND

In July 2016, Franciscan acquired WSO and became the employer of its seven orthopedic physicians ("the WSO Acquisition"). In early September 2016, Franciscan and TDC, a multispecialty group with fifty-four physicians including five orthopedists, *1298entered into a series of agreements ("the TDC Affiliation"). In Count 1, the State claims that Franciscan and TDC are separate economic entities that entered into an agreement to jointly negotiate the prices for the services they provide to the public. The State asserts that these agreements constitute a horizontal price-fixing agreement that is per se illegal or otherwise constitutes an unreasonable restraint of trade in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1. In Count 2, the State claims that the effect of Franciscan's acquisition of WSO may be to substantially lessen competition or tend to create a monopoly in violation of Section 7 of the Clayton Act, 15 U.S.C. § 18. The State argues that the effects of the subsequent TDC Affiliation should be incorporated into analysis of the effect on competition of the prior WSO Acquisition.

II. DISCUSSION

First, the Court will consider Franciscan and WSO's motion for summary judgment on Count 2, which alleges the WSO Acquisition violates Section 7 of the Clayton Act. Second, the Court will consider Franciscan and TDC's motion for summary judgment on the State's allegation that the TDC Affiliation constitutes a per se violation of Section 1 of the Sherman Act.

A. Summary Judgment Standard

Summary judgment is proper only if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(c). The moving party is entitled to judgment as a matter of law when the nonmoving party fails to make a sufficient showing on an essential element of a claim in the case on which the nonmoving party has the burden of proof. Celotex Corp. v. Catrett , 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). There is no genuine issue of fact for trial where the record, taken as a whole, could not lead a rational trier of fact to find for the nonmoving party. Matsushita Elec. Indus. Co. v. Zenith Radio Corp. , 475 U.S. 574, 586, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (nonmoving party must present specific, significant probative evidence, not simply "some metaphysical doubt"). See also Fed. R. Civ. P. 56(e). Conversely, a genuine dispute over a material fact exists if there is sufficient evidence supporting the claimed factual dispute, requiring a judge or jury to resolve the differing versions of the truth. Anderson v. Liberty Lobby, Inc. , 477 U.S. 242, 253, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986) ; T.W. Elec. Serv., Inc. v. Pac. Elec. Contractors Ass'n , 809 F.2d 626, 630 (9th Cir. 1987).

The determination of the existence of a material fact is often a close question. The Court must consider the substantive evidentiary burden that the nonmoving party must meet at trial-e.g., a preponderance of the evidence in most civil cases. Anderson , 477 U.S. at 254, 106 S.Ct. 2505 ; T.W. Elec. Serv., Inc. , 809 F.2d at 630. The Court must resolve any factual issues of controversy in favor of the nonmoving party only when the facts specifically attested by that party contradict facts specifically attested by the moving party. The nonmoving party may not merely state that it will discredit the moving party's evidence at trial, in the hopes that evidence can be developed at trial to support the claim. T.W. Elec. Serv., Inc. , 809 F.2d at 630 (relying on Anderson , 477 U.S. at 255, 106 S.Ct. 2505 ). Conclusory, nonspecific statements in affidavits are not sufficient, and missing facts will not be presumed. Lujan v. Nat'l Wildlife Fed'n , 497 U.S. 871, 888-89, 110 S.Ct. 3177

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Bluebook (online)
388 F. Supp. 3d 1296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-franciscan-health-sys-wawd-2019.