Judge refuses to throw out $34M verdict against RBM

A New York federal judge has denied a motion to throw out a $34 million jury verdict against CareCore National, a radiology benefits management (RBM) company, in an antitrust case.

U.S. District Court Judge Leonard Wexler of the Eastern District of New York also denied Bluffton, S.C.-based CareCore’s request for a new trial.

The lawsuit was brought by a group of New York radiology practices that accused CareCore of excluding the practices from insurance networks for upright MRI services.

A statement from CareCore National said the company was “disappointed” by the denial of the post-trial motion.

“We remain confident that we acted properly, in compliance with the law, and in the interest of quality cost effective healthcare,” read the statement. “CareCore is immediately pursuing all available courses of action and are confident that we will prevail in the appellate court.”

CareCore contracts with managed care organizations to provide radiology utilization management for commercial and government program subscribers across the U.S., including networks providing outpatient diagnostic imaging in New York and New Jersey.

The attorney for the plaintiffs also released a statement in response to Judge Wexler’s decision which said the jury was unanimous in finding CareCore had “unreasonably restrained trade” and that it would be very difficult to reverse the verdict on an appeal.

After the initial verdict in November 2010, CareCore reached an agreement with the office of the Attorney General of New York after the state received complaints about the company. CareCore was accused of showing preference for its owners in network decisions, choosing not to contract with qualifying physicians, and the company said it would institute organizational reforms as a result.

CareCore continues to face anti-trust cases from Jericho Specialty Imaging and MDImaging, both in the state of New York.

Evan Godt
Evan Godt, Writer

Evan joined TriMed in 2011, writing primarily for Health Imaging. Prior to diving into medical journalism, Evan worked for the Nine Network of Public Media in St. Louis. He also has worked in public relations and education. Evan studied journalism at the University of Missouri, with an emphasis on broadcast media.

Around the web

The new technology shows early potential to make a significant impact on imaging workflows and patient care. 

Richard Heller III, MD, RSNA board member and senior VP of policy at Radiology Partners, offers an overview of policies in Congress that are directly impacting imaging.
 

The two companies aim to improve patient access to high-quality MRI scans by combining their artificial intelligence capabilities.