US: State settles antitrust suit with CHI Franciscan

CHI Franciscan will keep its affiliations with two Kitsap physicians groups as part of the resolution of an antitrust lawsuit brought against the groups by the state in 2017.

CHI will be required to put up its controlling interest in a Silverdale surgery center for sale and pay as much as $2.5 million to the state as part of the settlement agreement with the state, filed Monday in US District Court in Tacoma.

Attorney General Bob Ferguson’s office filed the suit, claiming separate agreements between CHI and The Doctors Clinic and WestSound Orthopaedics violated antitrust laws, which the state alleged meant decreased competition and higher prices for patients. CHI acquired WestSound Orthopaedics and became affiliated with The Doctors Clinic in 2016.

“CHI Franciscan’s actions unlawfully decreased competition and increased prices at the expense of patients,” Ferguson said in a news release. “Today’s agreement holds CHI Franciscan accountable for putting its bottom line ahead of the people on the Kitsap Peninsula.”