Major Florida Oncology Group Pays $100 Million to Settle Antitrust Charges

George Indest

Attorney Geroge F. Indest III

By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law

On April 30, 2020, the U.S. Department of Justice (DOJ) announced that a major Florida oncology group will pay $100 million to resolve a criminal charge that it conspired with competitors to divvy up cancer treatments in the area. This marks the first settlement in an ongoing oncology market allocation probe against Florida Cancer Specialists & Research Institute LLC (FCS).

Details of the Antitrust Complaint.

The oncology group, which is based in Fort Myers, Florida, admitted to a single felony antitrust charge under the agreement, the DOJ said. Additionally, FCS inked a civil antitrust settlement with the Florida attorney general requiring it to pay the state $20 million, plus interest.

According to the DOJ, federal prosecutors filed a one-count felony charge against the company in Florida federal court. Prosecutors allege the company of participating “in a criminal antitrust conspiracy” with unnamed oncology competitors in the southwest Florida counties of Lee, Collier, and Charlotte.

The antitrust complaint states: “FCS and its co-conspirators agreed not to compete to provide chemotherapy and radiation treatments to cancer patients in Southwest Florida. Beginning as early as 1999 and continuing until at least 2016, FCS entered into an illegal agreement that allocated chemotherapy treatments to FCS and radiation treatments to a competing oncology group.” Therefore, according to the DOJ, “This conspiracy allowed FCS to operate with minimal competition in Southwest Florida and limited valuable integrated care options and choices for cancer patients.”

We want to point out that the quotations above are statements that were made by the government in relation to this case and were not necessarily proven or agreed to by FCS.

The Settlement Agreement.

Under the settlement agreement, the Florida oncology company admitted to a conspiracy to divvy up the radiation and chemotherapy treatments. In addition to the $100 million, which is the statutory maximum, FCS will have to “cooperate fully with the Antitrust Division’s ongoing investigation” being run with the FBI’s Fort Myers satellite office and must keep up a compliance program aimed at stopping and ferreting out criminal antitrust violations.

Additionally, the deal also obliges FCS to follow a “non-compete waiver” under which it promises not to enforce any non-compete provisions with current and former oncologists. Other employees who open an oncology practice in southwest Florida or join one are also included in the provision, said the DOJ.

Criminal Antitrust Charges are Rarely Sought.

Criminal antitrust charges are rarely brought by the government, especially under the current administration. Anyone that has ever been involved in bringing or defending an anti-trust case knows that it is difficult enough to even have the government open a civil case or investigation, much less a criminal case.

Click here to read the press release issued by the DOJ.

To view the antitrust complaint about this case on our website, click here.

You can read the state of Florida’s deal with FCS here.

To learn more, click here and read one of my prior blogs on a similar antitrust case.

Contact Health Care Attorneys Experienced in Negotiating and Evaluating Physician’s Complex Business Litigation, and Transactions

At the Health Law Firm, we provide legal services for health professionals and facilities. This includes physicians, medical groups, nurses, pharmacists, pharmacies, dentists, psychologists, psychiatrists, mental health counselors, ambulatory surgical centers, pain management clinics, assisted living facilities, home health agencies, nursing homes, and any other health care provider.

The services we provide include representation in complex state and federal litigation, reviewing and negotiating contracts, preparing contracts, business transactions, professional license defense, opinion letters, representation in investigations, fair hearing defense, representation in peer review and clinical privileges hearings, litigation of restrictive covenant (covenants not to compete), Medicare and Medicaid audits, commercial litigation, and administrative hearings.

To contact The Health Law Firm, please call (407) 331-6620 or (850) 439-1001 and visit our website at www.TheHealthLawFirm.com

Sources:

Koenig, Bryan. “DOJ Cuts $100M Deal In Oncology Antitrust Probe.” Law360. (April 30, 2020). Web.

Office of Public Affairs. Press Release. “Leading Cancer Treatment Center Admits to Antitrust Crime and Agrees to Pay $100 Million Criminal Penalty.” U.S. Department of Justice. (April 30,2020). Web.

About the Author: George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law is an attorney with The Health Law Firm, which has a national practice. Its main office is in Orlando, Florida, area. www.TheHealthLawFirm.com The Health Law Firm, 1101 Douglas Avenue, Suite 1000, Altamonte Springs, Florida 32714, Phone: (407) 331-6620.

KeyWords: Noncompetition agreement litigation, representation for noncompetition agreements, noncompetition agreement litigation attorney, noncompetition agreement attorney, restrictive covenant attorney, representation for restrictive covenants, covenant-not-to-compete representation, health care litigation representation, representation for employer enforcement of restrictive covenants, representation for complex litigation, restrictive covenant defense attorney, complex healthcare litigation attorney, anti-trust legal counsel, physician employment agreements, health professional employment contracts, legal counsel for defeat of noncompetition agreement, physician employment contract litigation, health professional contracting, negotiating health business transactions, health care business contract attorney, health care professional contract litigation, healthcare complex business litigation, representation for physician agreements, representation for physician business transactions, representation for physician complex litigation, representation for antitrust, representation for healthcare facilities, oncologist defense, licensed oncologist defense lawyer, The Health Law Firm reviews, The Health Law Firm attorney reviews

“The Health Law Firm” is a registered fictitious business name of and a registered service mark of The Health Law Firm, P.A., a Florida professional service corporation, since 1999.
Copyright © 2020 The Health Law Firm. All rights reserved.

Florida Oncology Group Agrees to Pay $100 Million in Antitrust Probe

George Indest

Attorney Geroge F. Indest III

By George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law

On April 30, 2020, the U.S. Department of Justice (DOJ) announced that a major Florida oncology group will pay $100 million to resolve a criminal charge that it conspired with competitors to divvy up cancer treatments in the area. This marks the first settlement in an ongoing oncology market allocation probe against Florida Cancer Specialists & Research Institute LLC (FCS).

Details of the Antitrust Complaint.

The oncology group, which is based in Fort Myers, Florida, admitted to a single felony antitrust charge under the agreement, the DOJ said. Additionally, FCS inked a civil antitrust settlement with the Florida attorney general requiring it to pay the state $20 million, plus interest.

According to the DOJ, federal prosecutors filed a one-count felony charge against the company in Florida federal court. Prosecutors allege the company of participating “in a criminal antitrust conspiracy” with unnamed oncology competitors in the southwest Florida counties of Lee, Collier, and Charlotte.

The antitrust complaint states: “FCS and its co-conspirators agreed not to compete to provide chemotherapy and radiation treatments to cancer patients in Southwest Florida. Beginning as early as 1999 and continuing until at least 2016, FCS entered into an illegal agreement that allocated chemotherapy treatments to FCS and radiation treatments to a competing oncology group.” Therefore, according to the DOJ, “This conspiracy allowed FCS to operate with minimal competition in Southwest Florida and limited valuable integrated care options and choices for cancer patients.”

We want to point out that the quotations above are statements that were made by the government in relation to this case and were not necessarily proven or agreed to by FCS.

The Settlement Agreement.

Under the settlement agreement, the Florida oncology company admitted to a conspiracy to divvy up the radiation and chemotherapy treatments. In addition to the $100 million, which is the statutory maximum, FCS will have to “cooperate fully with the Antitrust Division’s ongoing investigation” being run with the FBI’s Fort Myers satellite office and must keep up a compliance program aimed at stopping and ferreting out criminal antitrust violations.

Additionally, the deal also obliges FCS to follow a “non-compete waiver” under which it promises not to enforce any non-compete provisions with current and former oncologists. Other employees who open an oncology practice in southwest Florida or join one are also included in the provision, said the DOJ.

Criminal Antitrust Charges are Rarely Sought.

Criminal antitrust charges are rarely brought by the government, especially under the current administration. Anyone that has ever been involved in bringing or defending an anti-trust case knows that it is difficult enough to even have the government open a civil case or investigation, much less a criminal case.

Click here to read the press release issued by the DOJ.

To view the antitrust complaint about this case on our website, click here.

You can read the state of Florida’s deal with FCS here.

To learn more, click here and read one of my prior blogs on a similar antitrust case.

Contact Health Care Attorneys Experienced in Negotiating and Evaluating Physician’s Complex Business Litigation, and Transactions

At the Health Law Firm, we provide legal services for health professionals and facilities. This includes physicians, medical groups, nurses, pharmacists, pharmacies, dentists, psychologists, psychiatrists, mental health counselors, ambulatory surgical centers, pain management clinics, assisted living facilities, home health agencies, nursing homes, and any other health care provider.

The services we provide include representation in complex state and federal litigation, reviewing and negotiating contracts, preparing contracts, business transactions, professional license defense, opinion letters, representation in investigations, fair hearing defense, representation in peer review and clinical privileges hearings, litigation of restrictive covenant (covenants not to compete), Medicare and Medicaid audits, commercial litigation, and administrative hearings.

To contact The Health Law Firm, please call (407) 331-6620 or (850) 439-1001 and visit our website at www.TheHealthLawFirm.com

Sources:

Koenig, Bryan. “DOJ Cuts $100M Deal In Oncology Antitrust Probe.” Law360. (April 30, 2020). Web.

Office of Public Affairs. Press Release. “Leading Cancer Treatment Center Admits to Antitrust Crime and Agrees to Pay $100 Million Criminal Penalty.” U.S. Department of Justice. (April 30,2020). Web.

About the Author: George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law is an attorney with The Health Law Firm, which has a national practice. Its main office is in Orlando, Florida, area. www.TheHealthLawFirm.com The Health Law Firm, 1101 Douglas Avenue, Suite 1000, Altamonte Springs, Florida 32714, Phone: (407) 331-6620.

KeyWords: Noncompetition agreement litigation, representation for noncompetition agreements, noncompetition agreement litigation attorney, noncompetition agreement attorney, restrictive covenant attorney, representation for restrictive covenants, covenant-not-to-compete representation, health care litigation representation, representation for employer enforcement of restrictive covenants, representation for complex litigation, restrictive covenant defense attorney, complex healthcare litigation attorney, anti-trust legal counsel, physician employment agreements, health professional employment contracts, legal counsel for defeat of noncompetition agreement, physician employment contract litigation, health professional contracting, negotiating health business transactions, health care business contract attorney, health care professional contract litigation, healthcare complex business litigation, representation for physician agreements, representation for physician business transactions, representation for physician complex litigation, representation for antitrust, representation for healthcare facilities, oncologist defense, licensed oncologist defense lawyer, The Health Law Firm reviews, The Health Law Firm attorney reviews

“The Health Law Firm” is a registered fictitious business name of and a registered service mark of The Health Law Firm, P.A., a Florida professional service corporation, since 1999.
Copyright © 2020 The Health Law Firm. All rights reserved.

Florida Oncology Center Wants Noncompete, Antitrust Suit Dismissed

Headshot of The Health Law Firm's attorney George F. Indest IIIBy George F. Indest III, J.D., M.P.A., LL.M., Board Certified by The Florida Bar in Health Law

On April 9, 2019, 21st Century Oncology filed a motion to dismiss a noncompete antitrust suit that a group of oncologists filed against them in a Florida federal court on March 2019. According to their dismissal motion, the physician plaintiffs are overreaching with their claim that 21st Century used unlawful methods to build a monopoly on radiation therapy. The cancer treatment center called their suit a bid to “dress up” simple employment claims as an antitrust case and added that it “strains law and fact.”

Background of the Noncompete Antitrust Suit.

On March 15, 2019, a group of Florida oncologists hit the cancer treatment center with a seven-count complaint in federal court. In the complaint, 21st Century faced allegations that they forced doctors to sign illegal non-compete agreements and held a monopoly over oncology and radiation services in three counties around Fort Myers, Florida. Additionally, The company also allegedly required doctors to sign “onerous” non-compete agreements that have suppressed competition, the suit alleges. To learn more about the antitrust suit, click here.

Visit our website and view the complaint filed by the oncologists.

21st Century Hits Back.

In its motion to dismiss, 21st Century stated, “the oncologists want out of their contracts, but do not want to abide by the reasonable [and] legitimate non-compete provisions.” The company also said the oncologists’ Sherman Act claims are barred by a four-year statute of limitations, which has already run out because the noncompetes were negotiated more than four years ago. According to the motion, the oncologists have failed to show that they’ve suffered an antitrust injury at all, meaning they have no standing to bring those claims

Additionally, 21st Century added that even if the claims had any merit, they should be dismissed because the oncologists “directed and participated in the very purported misconduct at the base of their claims.”

Click here to view 21st Century’s motion to dismiss.

For more information on restrictive covenants, non-compete agreements and employment contracts, click here to read one of my prior blogs and learn how The Health Law Firm can assist you.

Contact Health Care Attorneys Experienced in Negotiating and Evaluating Physician’s Complex Business Litigation, and Transactions.

At the Health Law Firm we provide legal services for all health care providers and professionals. This includes physicians, nurses, dentists, psychologists, psychiatrists, mental health counselors, durable medical equipment suppliers (DME), medical students and interns, hospitals, ambulatory surgical centers, pain management clinics, nursing homes, and any other health care provider.

The services we provide include reviewing and negotiating contracts, preparing contracts, helping employers and employees enforce contracts, advice on setting aside or voiding contracts, litigation of contracts (in start or federal court), business transactions, professional license defense, opinion letters, representation in investigations, fair hearing defense, representation in peer review and clinical privileges hearings, litigation of restrictive covenant (covenants not to compete), Medicare and Medicaid audits, commercial litigation, and administrative hearings.

To contact The Health Law Firm, please call (407) 331-6620 or (850) 439-1001 and visit our website at www.TheHealthLawFirm.com.

Sources:

Boysen, Ryan. “21st Century Oncology Blasts Noncompete Antitrust Suit.” Law360. (April 9, 2019). Web.
Gluck, Frank. “21st Century Oncology facing continued legal troubles as it tries to put troubled past behind it.” Fort Myers News Press. (March 29, 2019). Web.

Leonard, Mike. “Cancer Center Fires Back in Radiation Oncology Non-Compete Case.” Bloomberg Law. (April 9, 2019). Web.

Atkins, Dorothy. “Fla. Oncologists Hit Cancer Centers With Antitrust Suit.” Law360. (March 18, 2019). Web.

About the Author: George F. Indest III, J.D., M.P.A., LL.M., is Board Certified by The Florida Bar in Health Law. He is the President and Managing Partner of The Health Law Firm, which has a national practice. Its main office is in the Orlando, Florida, area. www.TheHealthLawFirm.com The Health Law Firm, 1101 Douglas Ave., Altamonte Springs, FL 32714, Phone: (407) 331-6620.

KeyWords: Noncompetition agreement litigation, representation for noncompetition agreements, noncompetition agreement litigation attorney, noncompetition agreement attorney, restrictive covenant attorney, representation for restrictive covenants, covenant-not-to-compete representation, health care litigation representation, representation for employer enforcement of restrictive covenants, representation for complex litigation, restrictive covenant defense attorney, complex healthcare litigation attorney, anti-trust legal counsel, physician employment agreements, health professional employment contracts, legal counsel for defeat of noncompetition agreement, physician employment contract litigation, health professional contracting, negotiating health business transactions, health care business contract attorney, health care professional contract litigation, healthcare complex business litigation, representation for physician agreements, representation for physician business transactions, representation for physician complex litigation, representation for antitrust The Health Law Firm reviews, The Health Law Firm attorney reviews

“The Health Law Firm” is a registered fictitious business name of and a registered service mark of The Health Law Firm, P.A., a Florida professional service corporation, since 1999.
Copyright © 2019 The Health Law Firm. All rights reserved.

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