United States Third Circuit

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W. Penn Allegheny Health Sys., Inc. v. UPMC, 09-4468

In an antitrust suit by Pittsburgh's second-largest hospital system against Pittsburgh's dominant hospital system and health insurer under the Sherman Act and state law, claiming that defendants violated sections 1 and 2 of the Sherman Act by forming a conspiracy to protect one another from competition, district court's dismissal of the Sherman Act claims, and consequent refusal to exercise supplemental jurisdiction over state-law claims, is reversed in part, vacated in part, and remanded where: 1) the allegations in the complaint of direct evidence are sufficient to survive a motion to dismiss on the agreement element of the conspiracy claim; 2) plaintiff's allegations are sufficient to suggest that the conspiracy produced anticompetitive effects in the relevant markets; 3) because paying plaintiff artificially depressed reimbursement rates was an anticompetitive aspect of the alleged conspiracy, the underpayments constitute an antitrust injury; 4) under Zenith, plaintiff's conspiracy claims are not time-barred because the complaint adequately alleges that the defendants performed injurious acts in furtherance of the conspiracy within the limitations period; 5) district court erred in dismissing the attempted monopolization claim on the ground that the complaint fails to allege anticompetitive conduct; and 6) because the federal claims were improperly dismissed, the dismissal of the state-law claims for reconsideration by the district court is vacated.

Appellate Information

  • Argued 09/15/2010
  • Decided 11/29/2010
  • Published 11/29/2010

Judges

  • <a href="http://pview.findlaw.com/view/2231820_1">SMITH</a>

Court

  • United States Third Circuit

Counsel

  • For Appellant:
  • <a href="http://pview.findlaw.com/view/1051271_1">Barak A. Bassman</a>, <a href="http://pview.findlaw.com/view/1359062_1">Jonathan M. Jacobson</a>