Investigation and pending class action against the major corporate owners of hospitals and healthcare facilities in the Detoit area, including the following: Detroit Medical Center; Henry Ford Health System; Mount Clemons General Hospital, Inc.; St. John Health; Oakwood Healthcare Inc; Bon Secours Cottage Health Services; William Beaumont Hospital; and Trinity Health Corp.
Defendants, which own and operate hospitals in the Detroit-Warren-Livonia Metropolitan Statistical Area ("Detroit MSA" or "Detroit area"), have for years conspired among themselves and with other hospitals in the Detroit MSA to depress the compensation levels of registered nurses ("RNs") employed at the conspiring hospitals, in violation of Section 1 of the Sherman Act, 15 U.S.C. section 1. These hospitals agreed to regularly exchange detailed and non-public information about the compensation each is paying or will pay to its RN employees. The agreement to exchange such information has facilitated the formation, implementation and enforcement of defendants' wage-fixing conspiracy. Pursuant to this agreement defendants and their co-conspirators in fact have exchanged such information, through meetings, telephone conversations and written surveys. The exchange of this information itself has suppressed competition among Detroit-area hospitals in the compensation of RN employees, and has depressed the compensation they have paid to such employees.
Defendants' conspiratorial conduct has occurred in the context of a national nursing shortage. Absent their conspiracy, Detroit-area hospitals would have responded to the nursing shortage by, among other things, substantially increasing RN compensation in an effort to attract a sufficient number of RNs to their respective hospitals. The history of hospital RN compensation and vacancy rates in the Detroit MSA, however, reveals that hospital RNs are not being compensated at competitive levels. Despite years of high vacancy rates, compensation for hospital RNs in the Detroit MSA has remained low and surprisingly stagnant. The few compensation increases in the past several years have been far too small to substantially decrease the area's nursing shortage.
Name (Stock Symbol)
Detroit Medical Center
Detroit Medical Center owns and operates hospitals and medical facilities in the Detroit area.
Mount Clemens Regional Medical Center
Mount Clemens Regional Medical Center is a hospital in Michigan.
St. John Health Systems
St. John Health is comprised of seven hospitals plus more than 125 medical facilities in southeast Michigan.
Oakwood Healthcare Inc.
Oakwood Healthcare Inc. owns and operates hospitals in MIchigan.
William Beaumont Hospital
William Beaumont Hospital owns and operates a hospital in Michigan.
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