DOJ requires divestiture for Blue Cross Blue Shield to enter exclusive agreement with New West Health Services in Montana | Practical Law

DOJ requires divestiture for Blue Cross Blue Shield to enter exclusive agreement with New West Health Services in Montana | Practical Law

On 8 November 2011, the US Department of Justice (DOJ) announced that it will require New West Health Services Inc. to sell a majority of its commercial health insurance business to a third-party buyer and provide additional relief in a deal involving Blue Cross and Blue Shield of Montana Inc.  The divestiture is a required precursor for Blue Cross to proceed with an agreement with five of New West's six hospital owners, in which they will purchase health insurance exclusively from Blue Cross for six years.  DOJ's Antitrust Division and the Montana Attorney General's Office filed a civil suit in the US District Court for the District of Montana to block the proposed deal. At the same time, the DOJ filed the proposed settlement that would resolve their concerns.  The settlement must be approved by the District Court.

DOJ requires divestiture for Blue Cross Blue Shield to enter exclusive agreement with New West Health Services in Montana

Law stated as at 08 Nov 2011USA
On 8 November 2011, the US Department of Justice (DOJ) announced that it will require New West Health Services Inc. to sell a majority of its commercial health insurance business to a third-party buyer and provide additional relief in a deal involving Blue Cross and Blue Shield of Montana Inc. The divestiture is a required precursor for Blue Cross to proceed with an agreement with five of New West's six hospital owners, in which they will purchase health insurance exclusively from Blue Cross for six years. DOJ's Antitrust Division and the Montana Attorney General's Office filed a civil suit in the US District Court for the District of Montana to block the proposed deal. At the same time, the DOJ filed the proposed settlement that would resolve their concerns. The settlement must be approved by the District Court.