Rivals accuse hospital bed king Hill-Rom of ‘predatory’ tactics

Written By Unknown on Rabu, 14 Januari 2015 | 10.46

The country's No. 1 seller of hospital beds priced its products below cost in a "predatory" move to drive a rival out of business, a lawsuit filed on Tuesday alleges.

Hill-Rom Holdings, which owns a 70 percent-plus piece of the US market for hospital beds, also used improper "exclusionary bundling practices" to attack rival Universal Hospital Services, according to court papers.

Batesville, Ind.-based Hill-Rom could not be reached for comment.

In recent years, Hill-Rom has had brushes with anticompetitive complaints — resulting in two settlements of nearly $600 million, the suit alleges.

The first was for $250 million in 2002, after a jury found Hill-Rom used discounts to extend itself into patient-handling equipment.

The second was for $337.5 million in 2006 — a class settlement with hospitals and others — for charging "supra-competitive prices" after unfairly bundling beds with other patient equipment.

As part of the second settlement, Hill-Rom agreed to a three-year injunction against bundling and group pricing its products.

In Tuesday's complaint, however, Universal claims "the reprieve on the industry was short-lived."


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