Memorial Hermann v. Town & Country Hospital

Six physician-investors in Houston Town & Country Hospital claimed that Memorial Hermann caused the failure of their hospital, and asserted antitrust claims and claims for tortious interference with prospective and existing business relationships. HTCH closed after 13 months in business.  The plaintiffs claimed that Memorial Hermann caused the failure of HTCH by illegally conspiring with major health insurers to prevent HTCH from getting managed-care contracts.  The plaintiffs sought approximately $25 million in damages, including trebling and attorneys’ fees. Beck Redden defended Memorial Herman just as the public debate regarding healthcare reform in America reached a crescendo. 

Faced with a David versus Goliath case, Beck Redden chose not to criticize the plaintiffs’ medical work, as they were doctors with staff privileges at Memorial Hermann’s hospitals.  Instead, the defense strategy focused on Memorial Hermann’s need to compete aggressively to survive in a harsh industry on a level playing field.  The defense focused on ways that the plaintiffs’ failure had nothing to do with Memorial Hermann.  After a trial lasting nearly two and a half months, the jury returned a complete defense verdict.