DES MOINES, Iowa — A federal judge has ruled to dismiss a case involving allegations that a group of central Iowa pathologists engaged in anti-competitive practices to preserve a monopoly. The lawsuit was one of several linked cases centering around accusations of unfair market practices among pathology service providers in the region.
In May 2024, a lawsuit was initiated by four pathologists in the U.S. District Court for the Southern District of Iowa. These medical professionals had earlier branched out to form their own laboratory, Goldfinch Laboratory of Urbandale, after parting ways with their former employers, Iowa Pathology Associates (IPA) of Des Moines and Regional Laboratory Consultants (RLC). They accused IPA and RLC of attempting to inhibit competition in the pathology market of central Iowa, an act allegedly breaching both state and federal competition laws.
The contention at the heart of the lawsuit revolved around alleged practices by IPA and RLC to pressure pathologists into signing employment contracts that included non-compete clauses. This action purportedly aimed to restrict these professionals from joining competing labs. The plaintiffs also accused their former employers of refusing to provide necessary biopsy slides for ongoing patient care, a move that potentially endangered patient health.
However, Judge Rebecca Goodgame Ebinger’s recent decision threw out these claims. Her judgment highlighted a key shortfall in the plaintiff’s arguments, stating Goldfinch Laboratory failed to clearly outline a specific geographic market where the defendants prevented access to alternative pathology services. The judge noted that the plaintiffs did not convincingly present a scenario where medical referrals could not theoretically seek services outside central Iowa.
This federal lawsuit dismissal is just one part of broader litigation involving these entities. IPA and RLC have an ongoing case against the four pathologists who founded Goldfinch, which is nearing conclusion in a state court. The allegations in this case are more severe, with claims of inappropriate actions against IPA’s interests before their departure from the company.
Additionally, there is a separate discrimination lawsuit filed by two of the Goldfinch founders, Tiffani Milless and Caitlin Halverson. They claim that their remuneration was significantly lower compared to less qualified male colleagues. This trial is set for August 2025.
The amalgamation of these legal battles provides a complex picture of the competitive dynamics within the pathology service industry in central Iowa, highlighting the challenging environment healthcare professionals navigate in balancing competitive practices with medical ethics and patient care standards.
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