DOJ Sues New York-Presbyterian for Antitrust Violations

The U.S. Department of Justice's Antitrust Division, alongside the U.S. Attorney’s Office for the Southern District of New York, has launched a civil antitrust lawsuit against The New York and Presbyterian Hospital (New York-Presbyterian). The complaint, filed in the U.S. District Court for the Southern District of New York, accuses the hospital of violating Section 1 of the Sherman Act by imposing contract restrictions that limit competitive healthcare options in New York City.

New York-Presbyterian, the largest hospital system in the city, operates eight hospitals and various outpatient facilities. The lawsuit seeks to prevent the hospital from continuing contractual practices that restrict insurers and employers from offering cost-effective health insurance plans. This legal action marks the second case this year by the Antitrust Division aimed at promoting competitive healthcare markets and ensuring affordable care availability.

Acting Assistant Attorney General Omeed A. Assefi highlighted that New York-Presbyterian has been aware of the demand for cost-effective health plans that lower healthcare expenses. However, the hospital allegedly leverages its market position to maintain financial margins, hinder competition, and obstruct the formation of such plans by employers and unions. The Antitrust Division remains dedicated to enforcing antitrust laws and holding accountable those who contravene them.

The complaint elaborates on how New York-Presbyterian's contractual restrictions with payors prevent them from offering plans that exclude the hospital or do not list it in the premium tier. The hospital system also allegedly prohibits payors from offering lower copays for care at competing, often less expensive facilities, insulating itself from price competition and limiting affordable healthcare plans.

U.S. Attorney Jay Clayton emphasized ongoing efforts to address anticompetitive practices that contribute to elevated healthcare costs in collaboration with the Antitrust Division.