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A Chicago Hospital Will Pay $55M to Settle a Class-Action Lawsuit

NorthShore University HealthSystem in Illinois has agreed to pay $55 million to resolve a consumer class-action lawsuit in U.S. federal court that would mark the end of more than a decade of litigation over a merger with a rival suburban Chicago hospital.

Lawyers for the plaintiffs in a filing on Wednesday disclosed the terms of the settlement with NorthShore, which followed what they described as years of “extensive” evidence collection and “aggressive” legal wrangling over its 2000 merger with rival Highland Park Hospital.

The plaintiffs, individuals who paid for inpatient or outpatient services from NorthShore, alleged the hospital had abused its market power and could charge inflated prices. The lawsuit was filed in August 2007, after the Federal Trade Commission lodged a related action.


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