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Hill-Rom Holdings faces a lawsuit from rival Linet, accusing the medical supply giant of suppressing rival monopolistic practices through anti-competitive practices.
In the lawsuit filed on Tuesday, Linet stated that Hill-Rom seized the businesses of large medical systems such as Providence Health, Cleveland Clinic and Universal Health, and bundled multiple product contracts under a corporate agreement that outperformed Linet. Organize growing market share through group purchasing.
Linet entered the US market in 2010, mainly through its relationship with group buying organizations, which provided them with the ability to participate in bidding for hospital beds. But the company said that with the integration of hospitals across the country, Hillrom pursued these entities and signed multi-year exclusive contracts. These integrated systems usually have internal supply chain functions and can control which products must be used in their huge hospital network.
“Hillrom’s IDN-focused strategy will ensure that when Linet can even use its newly acquired license, prey has been captured and tied up [with GPOs] Start hunting,” Linet said in the lawsuit. “Moreover, since IDN often affects GPOs, Hillrom knows that it can then use IDN to eventually expel Linet from GPO distribution channels, thus killing two birds with one stone and ensuring all channels to hospital customers Are all closed. “
Linet requested the U.S. District Court for the Northern District of Illinois to rule that Hillrom had engaged in illegal acts in violation of the Sherman Act, award Linet damages, and prohibit Hillrom from reaching more agreements with the integrated distribution network and suspending the execution of existing contracts.
Hillrom has Long-term control Hospital bed market. In 1995, federal agencies investigated the company through an antitrust investigation. Since then, Hillrom has made numerous acquisitions to expand its product portfolio from hospital beds to digital medical devices and analytics.Baxter At the beginning of December Completed the $10.5 billion acquisition of Hillrom, and stated that they plan to expand Hillrom products internationally and transfer more products to doctor’s offices, outpatient care centers and patient homes.
Hillrom and Baxter did not respond to requests for comment.
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