In NorthBay Healthcare Gp., Inc. v. Kaiser Found. Health Plan, Inc., No. 17-cv-05005-LB, 2018 WL 1569821 (N.D. Cal. March 30, 2018), the district court dismissed plaintiff NorthBay's first amended complaint on the grounds that it failed to plead a cognizable antitrust claim by failing to prove that it suffered any causal antitrust injury and declined to exercise supplemental jurisdiction over the plaintiff's state law claims. Kaiser Foundation Health Plan (Kaiser Health Plan) terminated an agreement with the plaintiff for emergency medical services and then began reimbursing the plaintiff at less than half the rate specified in the agreement. The plaintiff argued that it was entitled to accept nothing less than full payment in the absence of the agreement, and that Kaiser Health Plan had underpaid it by more than $26 million. Regarding this "harm," the court determined that no allegations showed that the defendants' actions restrained trade in the relevant marked or injured overall competition, as opposed to showing injury only to the plaintiff. The district court also determined that the plaintiff pled:
[N]o facts to support its conclusion that Kaiser Hospitals steered uninsured or underinsured patients onto NorthBay. Even assuming NorthBay had pleaded an injury of the type the antitrust laws were intended to prevent, its claims would fail because it does not plead that it suffered that antitrust injury itself. Fundamentally, what NorthBay is alleging (aside from individualized grievances such as its complaints about the 2010 Agreement) is not antitrust injury to itself but injury to a third party — a health insurer called Western Health Advantage ("WHA"), of which NorthBay owns 50% — that competes with Kaiser Health Plan.
Last, the district court observed that the plaintiff "may have pleaded itself out of a claim" by alleging that it "can set its billing rates for its services at whatever level it wants — and in the absence of a negotiated agreement, patients and insurance companies are required to pay NorthBay at those rates." As such, the district court decided, NorthBay suffered no antitrust injury.