The U.S. Department of Justice's Antitrust Division announced the "first-of-its-kind" deferred prosecution agreement or DPA it had entered into, with the Florida Cancer Specialists & Research Institute LLC (FCS).

Particularly, FCS admitted its violation of the "federal antitrust laws" through its participation in a "criminal antitrust conspiracy" for the allocation of radiation oncology and medical oncology treatments offered to cancer patients in Southwest Florida for nearly 20 years. 

According to the said agreement, FCS settled for an arrangement to pay $100 million for the statutory maximum criminal penalty, not to mention its cooperation with the DOJ in an investigation that's going on into market distribution in the oncology sector and the other conditions. 

Additionally, the Florida Attorney General also announced a so-called "parallel civil settlement with FCS" requiring the organization to pay over $20 million in disgorgement for the violations of the company of the unfair trade practice and state antitrust laws, concerning the scheme.

Punished for Involvement in Anticompetitive Agreements

The federal criminal action's announcement, and $120 million in charges, is said to be a significant statement from state and federal authorities that healthcare organizations nationwide will be punished for their involvement "in anticompetitive agreements."

Among the United States' largest independent hematology and independent oncology practices, FCS has roughly 100 offices and over 200 affiliated physicians. The details of the single-count federal offense complaint state that the FCS, including its co-collaborators, decided not to compete to provide radiation and chemotherapy treatments to "cancer patients in Southwest Florida," in a tactic that started as early as 1999 and lasted until 2016.

On top of the agreement to cooperate with the investigation of others that are part of the unlawful market allocation of the DOJ, the DPA necessitated that the FCS agree not to impose any provision that's non-compete with any present or previous doctors or employees.

In that way, they are removing limitations on these individuals to either join or open competing oncology practices, in initiatives to improve competition in treating cancer patients in Southwest Florida.

The DOJ indicated that the reason it agreed to defer prosecution in exchange for agreement and cooperation, was because of the considerable collateral consequences that would possibly result from the criminal conviction of FCS, particularly to present and future patients like those enrolled in clinical trials that are going on.

Several Reasons Why the Announcement is Notable

Such an announcement is notable because of many reasons. First, it seems clear that the justice department has to conduct a criminal investigation that's ongoing into market allocation and anticompetitive conduct in the oncology sector, and this initiative has only just started.

Also, there is every reason to perceive that the DOJ and the state authorities are likewise to pursue investigations in other therapeutic specialties.

Second, the maximum charge of $100 million and the considerable disgorgement suggests that healthcare organizations will find themselves with the stiffest of punishments for anticompetitive conduct.

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