Dive Brief:
- Biomedical Research Foundation (BRF), the company that currently manages LSU's Shreveport hospital and another of its hospitals in Monroe, is suing regional competitor Willis-Knighton Health System for federal antitrust violations and for trying to take away patients and university-affiliated doctors.
- The lawsuit came just days after LSU filed a breech of contract notice against BRF in an effort to get the foundation to relinquish control of its hospitals.
- The suit filed by BRF claims that if LSU doctors provide specialty care at Willis-Knighton clinics, Willis-Knighton will have a monopoly in the market, largely eliminating competition and driving up healthcare costs in the region.
Dive Insight:
Although BRF maintains that the suit was not filed in retalliation for LSU's attempt to regain control of its hospitals, it's not surprising that BRF has made a bold move as the fight continues. And it is likely to continue, maybe even for years.
LSU and BRF officials have repeately clashed since BRF took over as operator of the two hospital almost two years ago. At the time it got the no-bid contract, BRF had no experience operating a patient care facility. Additionally, According to the New Orleans Advocate, several state officials are pushing for LSU to find a new operator, and are asking LSU to consider turning operations over to Willis-Knighton.
This continuing saga should serve as a warning to other hospitals that may be are considering turning over their operations to an outside company, particularly one with no previous experience operating a patient care facility. Once you relinquish control, you won't get it back without a fight. So make sure you perform due diligence and also leave yourself room to bail out if the new operator doesn't turn out to be a good fit for your hospital.