Second Circuit Revives Hospital Antitrust Case Reversing State Action Based Summary Judgment

In Lafaro v. New York Cardiothoracic Group PLLC, Second Circuit Court of Appeals vacated a lower court’s ruling of summary judgment for a surgeon and his practice – defendants in an antitrust case over access to operating rooms at state-run Westchester Medical Center in New York – finding that although the state-run hospital as a government entity is itself immune from the antitrust suit, can only extend its antitrust immunity to private parties with whom it contracts if it actively supervises the decisions of those private parties.  In its decision to remand the case, the Second Circuit said that “the allegations of misconduct by the private defendants are not a tangential attack on the authority of the governmental entity to enter into anti-competitive agreements, but rather on the authority of the private defendants to act beyond the scope of the agreement” and “whether the private defendants were in fact actively supervised remains for the district court to determine in the first instance.”

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*