Washington brought a lawsuit against DaVita and Fresenius concerning the defendants’ practice of requiring nephrologists that serve as medical directors of their dialysis centers to agree to noncompete covenants. The complaint states that medical directors are part-time independent contractors that perform the managerial and administrative work of overseeing dialysis centers and ensuring that the centers meet safety and quality standards. Washington alleges that the defendants’ noncompete covenants prevented medical directors, and frequently anyone from a medical director’s nephrology practice, from performing that role for other dialysis providers in their geographic areas. The complaint alleges that the noncompete covenants reduce competition to provide dialysis services to patients, reducing the incentive for improved quality, innovation and access to case as well as increasing prices for patients and employers who sponsor health insurance plans.

Washington seeks declaratory judgment that the noncompete covenants are void and unenforceable under the Washington Noncompetition Covenants Act. It also alleges that the defendants’ conduct violates the Washington Consumer Protection Act.