Plaintiff state alleged that In late 2005, Houston Town and Country Hospital and other physician-owned hospitals attempted to enter the market for hospital services in Houston, where Memorail Hermann was the largest competiitor. According to the state, Memorial Hermann systematically discouraged health insurers from adding Town and Country to their insurance coverage networks. At the same time, Memorial Hermann used its leverage to punish health insurers that established contracts with Town and Country. Because of Memorial Hermann’s conduct, Town and Country was unable to establish contracts with major health insurers in the Houston area. Town and Country went out of business in 2007. Memorial Hermann subsequently purchased the facilities from the Town and Country’s creditors. The settlement provided that for a period of five years, Memorial Hermann would not take any action to encourage a boycott of any competing provider, including threats of termination by Memorial Hermann or sharing information among health plans to encourage a boycott. Memorial Hermann will also send notice fo the settlement to all health plans with which it contracts and will pay the state $700,000 in costs.