Dive Brief:
- SignatureMD is suing MDVIP, the largest concierge medicine company in the U.S., over alleged anticompetitive practices.
- SignatureMD claims it has had difficulty expanding in certain markets because MDVIP is using non-compete clauses and alleged termination fees of up to $1 million to keep local concierge physicians locked into their system.
- While SignatureMD argues that MDVIP has a monopoly, with a market share of 70% and higher in many key metropolitan areas, MDVIP says the company is simply doing a better job serving physicians and patients.
Dive Insight:
Both sides agree the concierge medicine model is gaining ground and that they're seeing more physicians who want to give it a try.
According to SignatureMD'slawyers, the noncompete clauses at MDVIP are non-enforceable,anticompetitive and illegal under both numerous state laws as well as federal antitrust laws. The company is attempting to obtain an injunction to get MDVIP to cease its alleged anti-competitive practices and to provide damages under the California Business and Professions Code.
In the meantime, MDVIP says their contracts reflect healthcare industry standards and that SignatureMD is overstating MDVIPs market share and influence.