Henry & Joan Rozema, et al. v. The Marshfield Clinic, Security Health Plan of Wisconsin

Nathan Associates was retained by counsel representing a class of consumers of health care services in central Wisconsin. The class was alleged to have been injured as a result of a market allocation agreement among the major service providers in an eight-county area of central Wisconsin.

We conducted economic analysis supporting the testimony of Dr. Robert Tollison of the University of Mississippi. His testimony concerned the appropriate damage methodology and its application to quantify the damages to the class.

The analysis of injury to the class of consumers was based on a statistical demonstration that annual consumer health care costs and the premium rates of HMO participants were greater in the alleged affected areas than elsewhere in Wisconsin.

The estimated overcharge accounted for other market factors normally considered contributing to local health care costs. The parties reached a settlement before trial.