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Thursday, November 14, 2024

Suit alleges proposed hospital merger would violate antitrust laws

Federal Court
Thomaspliura

Pliura

EAST ST. LOUIS — Marion Healthcare is seeking an injunction against Southern Illinois Hospital Services in an effort to stop its acquisition of Harrisburg Medical Center, alleging it would create a monopoly. 

Marion Healthcare LLC filed a complaint July 29 in the U.S. District Court for the Southern District of Illinois against Southern Illinois Hospital Services and Harrisburg Medical Center Inc., alleging antitrust violations. 

According to the complaint, Southern Illinois Hospital Service made a request on May 25 to acquire Harrisburg Medical Center, which the plaintiff claims would violate the Sherman Act and Illinois Antitrust Act. Specifically, Marion Healthcare alleges that Southern Illinois Hospital is the "dominant competitor and a monopolist in a highly concentrated market" for both acute and general hospital services in Southern Illinois. They claim the acquisition would bring Harrisburg Medical Center into Southern Illinois Hospital system as "a fourth hospital" along with outpatient clinics and physician practices. Marion Healthcare further claims the merger would create a monopoly that would "substantially" reduce competition and limit alternatives to hospital, ambulatory and surgery services and curtail the established referral patterns they have established with Harrisburg Medical and its medical staff who are currently on staff at Harrisburg. 

Marion Healthcare seeks a permanent injunction against the merger and all other proper relief. The plaintiff is represented by Thomas Pliura of the Law Offices of Thomas J. Pliura, M.D., J.D., in LeRoy and attorney Richard Wolfram in New York. 

U.S. District Court for the Southern District of Illinois case number 3:21-CV-00873

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