The complaint, filed in the U.S. District Court for the Southern District of New York, alleges New York-Presbyterian uses its market power to stop payors from excluding the system from coverage or placing it in lower-tier categories, according to the Justice Department. The system also forbids insurers from offering lower copays when patients use rival hospitals that are often less expensive, the department said.
"Millions of New Yorkers pay more for healthcare because of these anticompetitive practices," Attorney General Pamela Bondi said.
Acting Assistant Attorney General Omeed A. Assefi said New York-Presbyterian "uses its market power to protect its margins, impede competition from rival hospitals, and prevent employers and unions from creating these plans."
The suit seeks an injunction barring New York-Presbyterian from maintaining the restrictions. The Justice Department argues the terms insulate the hospital from price competition and prevent the development of budget-conscious plans available elsewhere in the country.
U.S. Attorney Jay Clayton for the Southern District of New York said his office will "continue to work with our partners in the Antitrust Division to investigate and confront anticompetitive practices that contribute to higher healthcare costs."
The filing is the Antitrust Division's second healthcare competition case this year, the department said. New York-Presbyterian owns and operates eight hospitals and numerous outpatient facilities across the New York City area.