On July 14, SignatureMD, a concierge medicine provider, sued its competitor, MDVIP, in federal court over allegations that the latter’s business practices violated the Sherman Antitrust Act, as well as California’s antitrust and unfair competition statutes in the Cartwright Act.
According to the lawsuit, MDVIP, the largest provider of concierge medicine in the United States that boasts 200,000 members and 700 physicians, tied doctors with “evergreen” contracts that cost $1 million to terminate, prevented doctors from seeing any patients who are not MDVIP members, and even stops doctors from switching allegiance to different concierge medicine providers for at least two years after their contract with MDVIP expires.
SignatureMD claims that MDVIP enjoys a 70 percent share of the concierge medicine membership program market and a 65 percent to 100 percent share in major cities and local markets across the country. Combined with MDVIP’s restrictive practices, SignatureMD argues, rival concierge medicine providers can no longer compete with it effectively. SignatureMD is seeking an injunction, damages and costs from MDVIP.