A Medical Device Daily

The Department of Justice (DOJ) and the State of Arizona reported reaching a settlement with the Arizona Hospital and Healthcare Association (AzHHA; Phoenix) and its subsidiary, prohibiting the organizations from setting uniform bill rates paid to nurse staffing agencies.

The DOJ's Antitrust Division said that the parties' actions caused the bill rates paid to agencies, and ultimately the wages paid to temporary nurses in Arizona, to stagnate and fall below competitive levels.

The DOJ and the state of Arizona filed a civil antitrust lawsuit yesterday in U.S. District Court in Phoenix against AzHHA and its subsidiary, AzHHA Service Corp., which controls the AzHHA Registry, a group purchasing organization for temporary nursing services. At the same time, the DOJ and the state of Arizona filed a proposed settlement that would resolve the DOJ's and the state of Arizona's competitive concerns.

"Today's action restores competition in the market for temporary nursing services, which not only will benefit nurses, but also help to improve patient care in Arizona," said Thomas Barnett, assistant attorney general for the DOJ's Antitrust Division. "This settlement eliminates AzHHA's anticompetitive activities, while still allowing the registry to implement quality-assurance controls and credentialing services."

The Department said that hospitals rely on temporary nursing personnel to fill immediate and longer-term needs for nursing staff.

AzHHA operates the registry to assist its member hospitals with purchasing temporary nursing services from nurse staffing agencies, which directly employ the nurses and bill the hospitals for the nursing services provided.

The settlement, if approved by the court, would prohibit AzHHA and its member hospitals from agreeing on competitively sensitive contract terms, including uniform bill rates paid to nurse staffing agencies. The proposed settlement also prevents AzHHA from boycotting or discriminating against agencies or hospitals that choose not to participate in the AzHHA Registry.