On February 9, 2018, the U.S. Department of Justice (DOJ) announced it reached a proposed settlement with Henry Ford Allegiance Health (Allegiance) over allegations that Allegiance conspired with rival hospitals to engage in improper marketing practices.

Allegiance is a health system that operates the only general acute care hospital in Jackson County, Michigan. In March 2016, Allegiance became part of the Henry Ford Health System. DOJ contended that Allegiance and three other South Central Michigan hospitals violated antitrust laws when they agreed to withhold outreach and marketing in each other’s respective counties. DOJ previously settled claims against the three other South Central Michigan hospitals involved.

DOJ reached a proposed settlement with Allegiance that is pending approval by the U.S. District Court for the Eastern District of Michigan. Among other things, the proposed settlement prohibits Allegiance from engaging in improper communications with competitors regarding marketing practices or entering into improper agreements to limit marketing. Further, the proposed settlement requires that Allegiance certify compliance annually and agree to compliance inspections at DOJ’s request. Allegiance would also be responsible for reimbursing DOJ and the State of Michigan for certain costs involved in litigating the case.  Finally, the proposed settlement includes new provisions included in other recent consent decrees designed to improve the effectiveness and enforceability of such decrees.

The DOJ press release is available here.