October 5, 2022

On Tuesday, a number of northern New Jersey Hospitals filed a criticism within the District of New Jersey in opposition to RWJ Barnabas Well being, Inc. alleging violations of the Sherman Antitrust Act and the New Jersey Antitrust Act. 

The plaintiffs embrace CarePoint Well being Administration Associates, LLC, Carepoint Well being – Christ Hospital, CarePoint Well being – Bayonne Medical Heart and CarePoint Well being – Hoboken College Medical Heart that are affiliated via overlapping possession of entities and belief related to their founders. The criticism states that though the three hospitals are operated by CarePoint Well being Administration Associates, the hospitals are unbiased rivals offering medical care which advantages Hudson County, New Jersey. 

The plaintiffs allege that RWJ, together with its co-conspirators, has for years tried to systematically destroy competitors and to monopolize the supply of normal acute care hospital providers and associated well being care providers in northern New Jersey. The criticism purports that RWJ’s objective was to power the plaintiffs into insolvency and purchase Hoboken College Medical Heart and shutdown the remaining plaintiff hospitals. The plaintiffs argue that RWJ’s objective disregards the wants of the poor, underinsured and charity care sufferers which CarePoint serves in its position as the protection internet hospital system in Jersey Metropolis.

Particularly, the criticism alleges that RWJ established most well-liked relationships with the state’s largest well being insurer and political figures within the state and engaged in improper efforts to drive emergency room visitors to its competing hospitals with out the legally required approval by the New Jersey Division of Well being (NJDOH) on the expense of the plaintiffs and New Jersey sufferers. The plaintiffs allege that RWJ asserted undue affect on the NJDOH and state officers to stop the plaintiffs from receiving authorities funds together with the American Rescue Plan Act. 

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Additional, the criticism alleges that RWJ issued a phony letter of intent to accumulate Christ Hospital and Hoboken College Medical Heart with the true intent of gaining market information and aggressive intelligence to freeze programmatic development and any vital hiring or development at Christ Hospital. Moreover, the criticism alleges that RWJ started spreading rumors of closure and consolidation of Christ Hospital and Hoboken College Medical Heart to trigger a fabric hostile impact on Christ Hospital’s operations, resulting in attrition of physicians, workers and sufferers.

The plaintiffs allege that RWJ’s and its co-conspirators’ anti-competitive and predatory enterprise actions have created a stalemate within the progress of well being care in Hudson County jeopardizing the well being of the group. 

Accordingly, the plaintiffs filed the current go well with alleging violations of Sections 1 and a pair of of the Sherman Antitrust Act and the New Jersey Antitrust Act in search of declaratory and injunctive  aid, treble damages and attorneys charges. The plaintiffs are represented by Dilworth Paxson LLP.