A judge has thrown out most of Aultman Health Foundation’s claims against rival Mercy Medical Center.
After testimony concluded last week in a multimillion dollar civil trial between the two hospitals, Stark County Common Pleas Judge Frank Forchione ruled that Aultman didn’t prove its case against Mercy in five of six counterclaims.
The rest of the case will be decided by an eight-person jury, which will begin deliberating this week. Attorneys for Aultman and Mercy will present their closing arguments today.
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The civil case has been called the largest in Stark County Common Pleas history and has generated intense interest across the community and within Northeast Ohio’s health industry.
Mercy is seeking more than $100 million in damages from Aultman for allegations of unfair business practices.
Much of Mercy’s case centers on confidential extra payments Aultman gave to nine brokers to switch clients from other health insurers to Aultman’s AultCare. The brokers could earn as much as $200 per new person enrolled in AultCare, in addition to regular compensation.
Mercy has alleged that the secret ”bribe” payments to brokers were part of a scheme to get more employer groups to switch to AultCare, which led to more patients going to Aultman Hospital.
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Aultman Hospital is AultCare’s only in-network hospital in Canton. Under most health insurance plans, patients must go to in-network facilities to pay the lowest charges.
Aultman has denied the allegations and is seeking its own damages in a countersuit that accuses Mercy of spreading ”libelous falsehoods.”
In his ruling, Forchione dismissed Aultman’s counterclaims that Mercy defamed its rival or made false and misleading statements in letters or advertising.
The judge also ruled that Mercy did not interfere with Aultman’s business relationships or engage in frivolous conduct by suing Aultman.
Forchione denied Mercy’s motion to throw out Aultman’s counterclaim of unfair competition.
The judge is providing the jury 80 pages of instructions to use as it deliberates.
Mercy is pursuing six claims against Aultman: improper restraint of fair competition, illegal interference with business relations, deceptive trade practices, unfair competition, conspiracy with brokers to Mercy’s detriment and a pattern of corrupt activity.
Cheryl Powell is a health reporter for The Akron Beacon Journal, the daily newspaper in Akron and a syndication partner of MedCity News.
