August 11, 2020

Volume X, Number 224

August 10, 2020

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Oncology Provider Is Subject to $100 Million Criminal Antitrust Penalty

On April 30, 2020, the Antitrust Division of the U.S. Department of Justice (“DOJ”) issued a press release announcing a deferred prosecution agreement with a major oncology practice in Florida. As a condition of the deferred prosecution, the oncology group admitted to participating in a criminal conspiracy to allocate cancer treatment services, agreed to pay a $100 million criminal penalty (the maximum penalty), and agreed to participate and cooperate in further investigations.

According to the deferred prosecution agreement, the oncology practice violated antitrust laws by agreeing with another oncology practice to allocate services, i.e., engaging in market allocation activities. Specifically, the deferred prosecution agreement states that the two practices agreed amongst themselves that medical oncology would be done by one practice, whereas radiation oncology would be performed by the other practice. A naked agreement to allocate markets is a per se violation of the antitrust laws.

The enforcement action by DOJ is a reminder to health care providers to monitor interactions with competitors, particularly when those interactions impact the provision of services or resource allocation by the providers. 

©2020 Epstein Becker & Green, P.C. All rights reserved.National Law Review, Volume X, Number 128

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About this Author

John Steren, Epstein Becker Law Firm, Health Care Litigation Attorney
Member

E. John Steren is a Member of the Firm in the Health Care & Life Sciences and Litigation & Business Disputes practices, in the Washington, DC, office of Epstein Becker Green. Mr. Steren devotes a significant portion of his practice to helping health care organizations manage the antitrust risks of joint ventures and other business arrangements. He also focuses his practice on other complex commercial and civil litigation matters.

202-861-1825
Patricia M. Wagner, Epstein becker green, health care, life sciences
Member

PATRICIA M. WAGNER is a Member of the Firm in the Health Care and Life Sciences and Litigation practices, in the firm's Washington, DC, office. In 2014, Ms. Wagner was selected to the Washington DC Super Lawyers list in the area of Health Care.

Ms. Wagner's experience includes the following:

Advising clients on a variety of matters related to federal and state antitrust issues 

Representing clients in antitrust matters in front of the Federal Trade Commission and the United States Department of Justice, and state antitrust authorities 

Advising clients on issues related HIPAA Privacy and security

Advising clients on issues related to state licensure and regulatory requirements

202-861-4182