Case Details

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Healthcare Research and Development Institute, LLC (HRDI)

Case Description

HRDI is a national group of leading hospital and health care system executives that provides health care consulting services to vendors of health care related products and services. Vendors pay an annual fee for membership privileges in HRDI. CT alleged that membership in HRDI provided vendors with special access to hospital CEOs who potentially could have influenced purchasing decisions at their respective hospitals. HRDI generally limited the number of vendors eligible to participate in HRDI to no more than two entities in any particular sector or industry at a given time. The so-called “Rule of 2” effectively gave members relative exclusivity in their access to CEOs through HRDI and, thus, provided them with a competitive advantage over other vendors who, as a result of the Rule of 2, were not permitted to become members. Under the settlement, HRDI agreed to dissolve its organization and create an entirely new one made up of only the hospital CEOs and other health care industry professionals, excluding any vendors and their representatives. HRDI must pay Connecticut $150,000. In addition, the Attorney General has ongoing investigations of vendors and others that may be involved in the alleged anticompetitive activities.