Westchester Radiological Associates, P.C. v. Empire Blue Cross and Blue Shield, Inc.

Second Circuit

Westchester Radiological Associates, P.C. v. Empire Blue Cross and Blue Shield, Inc.

884 F.2d 707, 1989 U.S. App. LEXIS 14189, 1989 WL 106696

CourtCourt of Appeals for the Second Circuit

DecidedSeptember 14, 1989

Docket1349, Docket 89-7305

StatusPublished

This text of 884 F.2d 707 (Westchester Radiological Associates, P.C. v. Empire Blue Cross and Blue Shield, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Westchester Radiological Associates, P.C. v. Empire Blue Cross and Blue Shield, Inc., 884 F.2d 707, 1989 U.S. App. LEXIS 14189, 1989 WL 106696 (2d Cir. 1989).

Pincite

Opinion

PER CURIAM:

Plaintiffs-appellants, a majority of the hospital-based radiologists in 17 downstate counties in and around New York City, appeal from an order of the United States District Court for the Southern District of New York, Kimba M. Wood, J., granting the motion for summary judgment of defendant-appellee Empire Blue Cross and Blue Shield, Inc. (“Empire”). Appellants challenge the arrangements between Empire and the downstate hospitals, whereby inpatient radiological services are purchased as part of a package of hospital services, so that radiologists do not bill Blue Cross subscribers directly for their services. Appellants contend that Empire’s arrangements with the hospitals violate section 1 of the Sherman Act, 15 U.S.C. § 1, by coercing the hospitals, through the use of monopoly power, to sell the services of appellants radiologists on terms that Empire could not obtain through legitimate bilateral negotiations with appellants. Appellants further contend that Blue Cross insists on so purchasing inpatient radiological services in order to use its leverage in the hospital insurance market to gain a competitive advantage in the medical services insurance market in contravention of section 2 of the Sherman Act. 15 U.S.C. § 2. Appellants finally argue that the court below should not have granted summary judgment because there were issues of fact for a jury.

We affirm for the reasons stated in Judge Wood’s well-reasoned opinion, reported at 707 F.Supp. 708.

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PER CURIAM:

Plaintiffs-appellants, a majority of the hospital-based radiologists in 17 downstate counties in and around New York City, appeal from an order of the United States District Court for the Southern District of New York, Kimba M. Wood, J., granting the motion for summary judgment of defendant-appellee Empire Blue Cross and Blue Shield, Inc. (“Empire”). Appellants challenge the arrangements between Empire and the downstate hospitals, whereby inpatient radiological services are purchased as part of a package of hospital services, so that radiologists do not bill Blue Cross subscribers directly for their services. Appellants contend that Empire’s arrangements with the hospitals violate section 1 of the Sherman Act, 15 U.S.C. § 1, by coercing the hospitals, through the use of monopoly power, to sell the services of appellants radiologists on terms that Empire could not obtain through legitimate bilateral negotiations with appellants. Appellants further contend that Blue Cross insists on so purchasing inpatient radiological services in order to use its leverage in the hospital insurance market to gain a competitive advantage in the medical services insurance market in contravention of section 2 of the Sherman Act. 15 U.S.C. § 2. Appellants finally argue that the court below should not have granted summary judgment because there were issues of fact for a jury.

We affirm for the reasons stated in Judge Wood’s well-reasoned opinion, reported at 707 F.Supp. 708.

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Bluebook (online)

884 F.2d 707, 1989 U.S. App. LEXIS 14189, 1989 WL 106696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westchester-radiological-associates-pc-v-empire-blue-cross-and-blue-ca2-1989.

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