University Health System in Shreveport and Vantage Health Plan have filed an antitrust lawsuit in federal district court in Shreveport.

The suit alleges actions taken, and about to be taken, by Willis-Knighton Medical Center violate federal antitrust laws. The complaint alleges that W-K has, through agreements with LSU Shreveport, intends to strip University Health-Shreveport of its commercially-insured business, then take over the hospital.

"We allege in our complaint that Willis-Knighton's plan would virtually eliminate competition in health care in the Shreveport area," said UH-S Board of Directors Chairman Steve Skrivanos. "UH-Shreveport is a critical safety net hospital for the poor and disadvantaged in the community, and since we took over the hospital, we have been able to open up new services, cut waiting times by 90%, and make the hospital more attractive and effective for all our patients."

Antitrust attorney David Ettinger of Detroit is representing the plaintiffs in the case. He said in a news conference today that W-K has made unlawful acquisitions in the past, all of which will harm healthcare in the community, hurt employers, insurers and consumers. It would also give Willis-Knighton a complete monopoly in Shreveport-Bossier.

"As the complaint explains, Willis-Knighton already has monopoly-level shares in many hospital and physician markets," Ettinger said. "In its own words in a press release, Willis-Knighton said 'Willis-Knighton is unlike any healthcare provider in Louisiana by virtue of our share of the health services market.' Our complaint also explains that Willis-Knighton has used this power already to charge prices that in many cases are even two and three times that of other providers."

Ettinger said this will get worse if W-K is allowed to move forward with its plan. So why did Vantage get involved in the lawsuit? CEO Gary Jones said because W-K has been unwilling to contract with the company, it's been difficult to market and build membership in the Shreveport market.

"We'd like the same opportunity in the Shreveport-Bossier area as we have in the rest of the state," Dr. Jones said.

There's no timeline on how long it might take to resolve the issue.

Willis-Knighton has issued its own statement about the lawsuit:

Willis-Knighton has a long-standing policy of not speaking or responding publicly on the business decisions or actions of other healthcare providers.

Willis-Knighton (WK) also has a 30 year public record and history of being a staunch supporter and vocal advocate of the LSU Health Sciences Center-Shreveport (LSU Medical School). WK has provided over $100 million in financial support to the LSU Medical School.

WK provides funds, advanced technology and other clinical resources in support of LSU faculty and staff.

Physicians and surgeons from LSU and WK have practiced and worked together, side-by-side, for decades. It has been and continues to be a healthy, positive relationship for patients and families throughout our area.

Last week our community learned that Louisiana State University has reportedly provided Biomedical Research Foundation, which was given the management contract for the LSU hospital in 2013, with an outline of numerous ways in which BRF has allegedly failed to meet its obligations.

While these issues are of deep concern to Willis-Knighton, we believe this to be a legal matter and dispute between Louisiana State University and the Biomedical Research Foundation.

Our first concern is the LSU Medical School, its current financial viability and its future here in North Louisiana. The LSU Medical School and Allied Health have long been a vital economic engine for our area, but more important they have provided physicians, surgeons, allied health providers, educators and scientists who serve our community and families with world class skills.

Our hope at Willis-Knighton is that the dispute will be resolved in a timely manner so that healthcare, and particularly the education of healthcare providers, will be uninterrupted.

 

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