MARKET

Surgical Care Affiliates indicted on charges of labor market collusion

A federal grand jury returned a two-count indictment Thursday in opposition to UnitedHealth Group subsidiary Surgical Treatment Affiliate marketers for agreeing with rivals not to solicit senior-stage employees, according to the Section of Justice. 

This represents the Antitrust Division’s first charges in the ongoing investigation into employee allocation agreements. SCA owns and operates outpatient medical care centers throughout the country.

What is THE Effect

The indictment charges SCA with entering into and engaging in two separate bilateral conspiracies with other healthcare firms to suppress levels of competition between them for the providers of senior-stage employees. That is a violation of the Sherman Act, the DOJ said. 

From about May 2010 to Oct 2017, SCA allegedly conspired with a corporation primarily based in Texas to allocate senior-stage employees by agreeing not to solicit each other’s senior-stage employees. And from February 2012 to July 2017, SCA allegedly conspired independently with a corporation

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