Judge rules Salem Health monopoly lawsuit can move forward
A Marion County Circuit Court judge has ruled that a lawsuit alleging Salem Health monopolized local heart care can move forward.
Judge James Edmonds on March 19 dismissed several claims in the suit brought by Oregon Heart Center, but ruled that the heart center’s allegations could show that Salem Health is unlawfully monopolizing heart care in the Salem area. That would require proving the claims at trial.
Oregon Heart Center first filed its $15 million lawsuit in September, claiming that the hospital was trying to intimidate competitors out of the market by pressuring patients to switch providers while still in their hospital beds, limiting referrals and access to information about independent cardiologists, and spreading misinformation about the clinic through the local health care community.
The lawsuit seeks a court order forcing Salem Health to stop engaging in anticompetitive practices and efforts to “drive (Oregon Heart Center) out of business.”
In November, Salem Health asked the judge to dismiss the lawsuit, claiming that becoming more competitive with the heart clinic is not grounds for an antitrust case.
Edmonds said the lawsuit’s claims that Salem Health pressured providers to make referrals within Salem Health, even if it delayed care in an emergency room, were clear enough claims of antitrust practice to go to trial.
“These allegations, if true, could constitute behavior that goes beyond ‘encouraging’ referrals, ‘growing’ a practice, or ‘promoting’ cardiology services. The allegations suggest ‘predatory’ behavior,” Edmonds said.
Edmonds also said Oregon Heart Center’s claim that the hospital was attempting to intimidate it out of the market by disrupting established patient relationships could proceed to trial.
The judge dismissed a claim that Salem Health was making a “concerted effort” to restrain Oregon Heart Center’s ability to work, saying the claim lacked details showing that Salem Health worked with its insurance provider to make the heart center out-of-network for staff.
Oregon Heart Center’s lawsuit also claimed that CEO Cheryl Wolfe disparaged the clinic in a newsletter to the local medical community, and has spread misinformation about the clinic through the local health care community.
Oregon Heart Clinic also claims that Salem Health and Wolfe blamed the clinic for the suicide of a former Salem Health surgeon. The original complaint contained no details about when this happened.
Judge Edmonds dismissed some of the defamation claims and asked for more details on others, including the physician’s suicide. He also asked for details about what harm the incidents caused Oregon Heart Center, and what impact they had on the public.
Oregon Heart Center thanked the court for its thoughtful review in an emailed statement from its attorney Stanton Gallegos.
“OHC is reviewing its options for the peripheral claims that were dismissed, but with our primary antitrust claim fully intact, we look forward to addressing Salem Health’s practices at trial,” he said.
Salem Health, in an emailed statement from spokeswoman Lisa Wood, said it appreciated the court’s consideration.
“As for the elements of the suit still being contemplated, it is too soon to comment as we consider next steps,” she said.
The case’s next court date has not been scheduled, according to court records.
Contact reporter Abbey McDonald: [email protected] or 503-575-1251.
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Abbey McDonald joined the Salem Reporter in 2022. She previously worked as the business reporter at The Astorian, where she covered labor issues, health care and social services. A University of Oregon grad, she has also reported for the Malheur Enterprise, The News-Review and Willamette Week.
