The complaint, filed in the U.S. District Court for the Southern District of New York, describes New York-Presbyterian as "the largest and most powerful hospital system in New York City," with eight hospitals and many outpatient facilities in the area.
The Antitrust Division alleges that New York-Presbyterian's contracts with payors prevent them from offering plans that exclude the hospital system or place it outside the most favored tier. The agency also alleges the hospital "forbids 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 said 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 suit seeks to enjoin the contract restrictions. The department said the case is the second antitrust action it has brought this year targeting healthcare competition.