Dive Brief:
- The University of Pittsburgh Medical Center (UPMC) is suing its liability insurer, United Educators Insurance, on the premise the insurer should be responsible for covering the cost of a $12.5 million settlement UPMC agreed to pay to local property management company Royal Mile Co, the Pittsburgh Business Times reports.
- The settlement is for an antitrust lawsuit Royal Mile Co. filed in 2010 that alleges UPMC conspired with Highmark to keep insurance rates high and keep other competitors out of the area market.
- UPMC tentatively settled for $12.5 million in the case on Jan. 28, and then on Feb. 19, filed a complaint that argues United Educators should pay the full amount.
Dive Insight:
UPMC now has $12.5 million riding on whether the settlement goes forward and who will pay it. The settlement remains in question while Highmark refuses to settle and puts the two competitors at odds in what UPMC calls unfair stalling to keep UPMC embroiled in the case.
UPMC's current argument that United Educators should pay its settlement hinges on the idea that the 2010 Royal Mile case should be viewed as one and the same as a 2009 case brought by West Penn Allegheny Health System Inc. for the very same reasons. The years are important because UPMC's policy terms with United Educators varied between 2008 and 2010.
"The WPAHS Suit and Royal Mile Suit both sought damages resulting from the same alleged conspiracy," the Pittsburgh Business Times quotes the argument. "In fact, the allegations of wrongdoing against UPMC articulated in each complaint are nearly identical."