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ARTICLE · 17 JUNE 2007

Government Settles Antitrust Suit Challenging Wage-Setting By Nurse Registry

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The Antitrust Division of the United States Department of Justice (DOJ) and the State of Arizona reached a settlement with the Arizona Hospital and Healthcare Association (AzHHA), and one of its subsidiaries (which offered its members nurse registry options) to end a lawsuit that challenged, on antitrust grounds, AzHHA's group purchasing organization for temporary nursing services.

United StatesAntitrust/Competition Law
Michael Naranjo
Michael Naranjo
David Simon
David Simon
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Action:

 The Antitrust Division of the United States Department of Justice (DOJ) and the State of Arizona reached a settlement with the Arizona Hospital and Healthcare Association (AzHHA), and one of its subsidiaries (which offered its members nurse registry options) to end a lawsuit that challenged, on antitrust grounds, AzHHA's group purchasing organization for temporary nursing services.

Impact:

 The government's challenge of the AzHHA nurse registry program emphasizes the government's concern over anti-competitive practices associated with nurse wages as well as the potential anticompetitive aspects of group purchasing programs, particularly where a combination of purchasers possesses market power that enables it to depress prices to below competitive levels.

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