Colorado AG canceled USAP noncompetes in CO

[ASA6]

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Colorado AG breaks up anesthesiology monopoly that dominated Denver and Durango health care markets

A settlement between the attorney general’s office and U.S. Anesthesiology Partners, filed late Monday afternoon in Denver District Court, also will loosen the company’s stranglehold on its Colorad…

www.denverpost.com

 

[ASA6]

All their non competes are now invalid, and they cancelled their exclusive contracts at 5 hospitals that were previously called centura. Curiously, they left all their exclusive contracts at HCA hospitals intact.

 

[Pharmado]

Maybe all the former Centura hospitals want to take anesthesia in-house and the HCA hospitals are not as eager???

 

[aneftp]

I’m a little confused on the whole entire usap non compete.

If you were one of the selling partners in 2015/2016. U got paid. Now they thought they would get more in stocks with the ipo.

Those are the partners who are really salty

I get it if I’m a new employee bound by the same non compete since I didn’t get any benefits from the buyout.

 

[ASA6]

I’m a little confused on the whole entire usap non compete.

If you were one of the selling partners in 2015/2016. U got paid. Now they thought they would get more in stocks with the ipo.

Those are the partners who are really salty

I get it if I’m a new employee bound by the same non compete since I didn’t get any benefits from the buyout.

And 9 years later there are probably a lot of new employees. The issue arises when USAP controls so many contracts in Colorado it makes it impossible to practice anywhere without running into non compete issues. The AG just said no you can't do that.

The part I find confusing is ending their exclusivity at only 5 hospitals.

 

[Pharmado]

And ending the non-compete shouldn't necessarily end the hospital contract. I have to assume these hospitals wanted out of their USAP contract but had no other place to go to get services. Now they can hire the former USAP employees and/or those employees can form their own group and continue to provide services.

 

[ASA6]

And ending the non-compete shouldn't necessarily end the hospital contract. I have to assume these hospitals wanted out of their USAP contract but had no other place to go to get services. Now they can hire the former USAP employees and/or those employees can form their own group and continue to provide services.

Yeah true. Or current employees are now free to quit and start their own group at those 5 hospitals...

 

[Bertelman]

The part I find confusing is ending their exclusivity at only 5 hospitals.

I don’t know much about CO, but perhaps the Centura hospitals only exist in CO? If you invalidate exclusivity contracts for HCA, it may have ramifications outside CO.

Or it might come down to language. There could have been a phrase or sentence in the HCA contracts that differed from the others.

Contract law can often rest on one or two words in a contract. Ask me how I know.

 

[Howard888]

Well now Amyl can see the rumblings in CO were real. Again, Texas isn’t CO though. Very different set up but this sets a precedent

 

[aneftp]

Well now Amyl can see the rumblings in CO were real. Again, Texas isn’t CO though. Very different set up but this sets a precedent

The money is different in Texas vs Colorado before and even after the buyout.

It all comes down to money. Colorado never made the same as the original pinnacle group in Dallas area. And obviously buyout was different and post buyout money still huge differences

 

[nycitygas]

I wonder what the payor mix is at the Centura hospitals

 

[deleted1130227]

And 9 years later there are probably a lot of new employees. The issue arises when USAP controls so many contracts in Colorado it makes it impossible to practice anywhere without running into non compete issues. The AG just said no you can't do that.

The part I find confusing is ending their exclusivity at only 5 hospitals.

Pure speculation, but, I suspect that this was a discretionary decision on the part of the office of the Attorney General. A balance between doing what they think is in the best interest of these local communities balanced against overreaching and knocking down all the non competes in the state and risking a knock down drag out fight with a company with substantial resources and maybe scoring political points with some people.

 

[Howard888]

The money is different in Texas vs Colorado before and even after the buyout.

It all comes down to money. Colorado never made the same as the original pinnacle group in Dallas area. And obviously buyout was different and post buyout money still huge differences

I agree with this 100%. More the precedent I was referring to was the market share/groups that they bought in Texas and rates that skyrocketed as a result. Most of Houston. Half of Austin. I think at least half of Dallas. Some of San Antonio.

I didn’t think the ftc lawsuit would make it but after seeing this…maybe. Particularly if there really was some deal with another private equity to stay out of each others markets which is mentioned in the suit.



i

 

[aneftp]

I agree with this 100%. More the precedent I was referring to was the market share/groups that they bought in Texas and rates that skyrocketed as a result. Most of Houston. Half of Austin. I think at least half of Dallas. Some of San Antonio.

I didn’t think the ftc lawsuit would make it but after seeing this…maybe. Particularly if there really was some deal with another private equity to stay out of each others markets which is mentioned in the suit.



i

Usap has made their money back from their 2015/16 buyout. They are trying to get out of businesses that aren’t as profitable due to labor costs. Even profitable business as the article states. With the 20% they want to take.

Like I said before. 20% is good margin to make. And they probably make a lot more than 20% margin to recoup all cost and more

These guys don’t want to be running the daily business

 

[IMGASMD]

I don’t know much about CO, but perhaps the Centura hospitals only exist in CO? If you invalidate exclusivity contracts for HCA, it may have ramifications outside CO.

Or it might come down to language. There could have been a phrase or sentence in the HCA contracts that differed from the others.

Contract law can often rest on one or two words in a contract. Ask me how I know.

How you know?

 

[Bertelman]

How you know?

My hospital beat a major AMC. I was a named defendant. I saw all the proceedings.

Came down to precedence from a ruling in the 1800’s

 

[IMGASMD]

My hospital beat a major AMC. I was a named defendant. I saw all the proceedings.

Came down to precedence from a ruling in the 1800’s

Where is this said hospital? I want to get some edu-ma-cation

 

[Bertelman]

Sorry, anonymity.

But you can ask me generic questions. I don’t think I need to reveal where this occurred to educate.

 

[midazzoler]

Can you direct us to the 1800s case?

 

[Bertelman]

Gosh no, but it was very specific to my state’s law. And that state is not CO. I’d have to pull out my copy of the proceedings. Maybe if I get bored one day.

The legal aspect of it was a bit over my head. As best I could tell, it was tossed on a bit of a technicality. Essentially, the court ruled we all had a right to remain employed. Language in a service contract could not prevent that.