Medical Device Maker Forced to Settle Antitrust Lawsuit
Defendant medical device maker Hillenbrand Industries Inc. reached a $337.5 million settlement in the antitrust lawsuit brought against it by plainitff Spartanburg Regional Healthcare System. Hillenbrand, which makes healthcare equipment and caskets, settled this suit which stems from a June 2003 complaint that the company's Hill-Rom unit's discounting practices harmed competition in the healthcare industry and resulted in higher prices for hospital beds and in-room products.
The settlement agreement has been approved by the United States District Court for the District of South Carolina. The settlement covers all of the plaintiff's claims as well as those of U.S. and Canadian purchasers or renters of Hill-Rom products from 1990 through the date of the agreement on February 3, 2006. All told, it is expected that this settlement will have a beneficial impact for healthcare consumers, who ultimately bear the brunt of costs that are passed along by healthcare providers such as Spartanburg.