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HEALTHSOURCE WINS ANTITRUST CASE

 HEALTHSOURCE WINS ANTITRUST CASE
 CONCORD, N.H., Jan. 31 /PRNewswire/ -- Healthsource, Inc.


(NASDAQ: HLTH), a leading managed health care company, announced today that the U.S. District Court for the District of New Hampshire rendered a decision yesterday in favor of Healthsource on all counts in a lawsuit brought by U.S. Healthcare, Inc. in March 1991. The suit sought injunctive relief and treble damages for alleged antitrust and state law violations based on Healthsource's exclusivity option provision in its contractual arrangements with participating primary care physicians in New Hampshire. In ruling that Healthsource did not violate any state or federal antitrust laws, the court rejected U.S. Healthcare's definition of the relevant geographic and product markets, finding that the relevant market is health care financing in the state of New Hampshire. In doing so, the court said "(U.S. Healthcare's) position on the product market is as unrealistic and myopic as their position on the geographic market." The court found after a lengthy trial that there was healthy competition within the New Hampshire health care financing market, noting that some 300 health care insurers "actively compete" in New Hampshire. The court also rejected U.S. Healthcare's contention that Healthsource's favorable financial performance was a result of the exclusivity option. Instead, the court specifically found
 "...(Healthsource) was able to obtain its favorable medical
 loss ratio because of its ability to control costs. This
 is due in great part to the commitment of the (primary care
 physicians) instilled by Dr. Payson. This is of greater
 importance when we consider that historically no other IPA
 HMO has been successful in New Hampshire, although many have
 tried."
 Norman C. Payson, president and chief executive officer of Healthsource, Inc. said, "We are pleased with the court's decision. We have always believed our physician contracting policies were in accordance with applicable legal requirements."
 Healthsource, Inc. sponsors and manages HMOs in New Hampshire, Maine, South Carolina, Tennessee and New York and owns EBPA, one of the largest third-party claims administrators in New England. Healthsource also provides utilization review services and preferred provider networks primarily to self-insured employer plans and Blue Cross and Blue Shield of Vermont.
 -0- 1/31/92
 /CONTACT: Thomas Congoran, CFO, or Tracey Turner, shareholder relations, 603-225-5077, of Healthsource; or Kerry Thalheim, 212-661-8030, or Kathy Waller, 312-266-7800, of the Financial Relations Board, for Healthsource/
 (HLTH) CO: Healthsource, Inc.; U.S. Healthcare, Inc. ST: New Hampshire IN: HEA SU:


DH-EG -- NE003 -- 5504 01/31/92 09:22 EST
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Jan 31, 1992
Words:414
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