The complaint, filed in the Southern District of New York, seeks to enjoin New York-Presbyterian from imposing contractual restrictions the government says prevent insurers and employers from offering lower-cost health insurance options. The DOJ describes New York-Presbyterian as "the largest and most powerful hospital system in New York City," operating eight hospitals and numerous outpatient facilities.
According to the DOJ, the hospital system's contracts with payors bar plans that exclude New York-Presbyterian or place it outside the most favored tier. The agency alleges the contracts also "forbid payors from offering lower copays when patients chose to receive care at New York-Presbyterian's — often lower priced — rivals."
"Millions of New Yorkers pay more for healthcare because of these anticompetitive practices," Attorney General Pamela Bondi said in the announcement. She said the department "will fight relentlessly to ensure that Americans get the healthcare they need without facing exorbitant costs."
Acting Assistant Attorney General Omeed A. Assefi of the Antitrust Division 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." He added that the hospital system "has known for years that the American consumer wants budget-conscious health plans that reduce healthcare costs."
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 DOJ said the suit is the Antitrust Division's second healthcare competition case this year. The complaint's allegations have not been tested in court, and New York-Presbyterian has not yet responded to the filing.