MultiPlan Defense Amid Price-Fixing Scrutiny Gets Boost in Court

Antitrust attorney Kenneth Racowski commented for Bloomberg Law on a California court's dismissal of a price-fixing case against data analytics company MultiPlan Corp. and the potential implications for similar cases. The California Superior Court, San Francisco County, dismissed claims that MultiPlan's use of algorithmic pricing tools for determining out-of-network reimbursement rates violated the Sherman Antitrust Act. The decision comes amid heightened scrutiny of algorithmic price-fixing and anticompetitive behavior in the healthcare industry from the Federal Trade Commission (FTC) and U.S. Department of Justice (DOJ). Despite the victory in state court, MultiPlan still faces multidistrict litigation in Illinois over allegations that it engaged in a conspiracy with other health insurers. Mr. Racowski noted the California court ruling, while not binding authority, could bolster the company's defense in the federal case.

"If I was on the defendant side, I would be encouraged by having a win under your belt and something that you can cite," he said. "You can be sure MultiPlan and the defendants will feature this decision from the California court front and center, and try to argue that it is persuasive."

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