The complaint, filed in the U.S. District Court for the Southern District of New York, targets contractual restrictions the Antitrust Division says New York-Presbyterian imposes on payors. The hospital system owns and operates eight hospitals and many outpatient facilities in the New York City area, according to the department.
The Justice Department alleges the contracts prevent payors from offering plans that do not include New York-Presbyterian or that do not feature the system in the most favored tier. The department also alleges the hospital forbids payors from offering lower copays when patients choose rivals, who the department says are often lower priced.
According to the Justice Department, these restrictions insulate New York-Presbyterian from price competition and limit rival hospitals from competing on price or value.
"Millions of New Yorkers pay more for healthcare because of these anticompetitive practices," Attorney General Pamela Bondi said in the Justice Department's announcement. "At the direction of President Trump, this Justice Department will fight relentlessly to ensure that Americans get the healthcare they need without facing exorbitant costs."
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 high cost of healthcare is frustrating to every New Yorker," said U.S. Attorney Jay Clayton for the Southern District of New York.
The suit seeks to enjoin New York-Presbyterian from imposing the contractual restrictions. The Justice Department said the case is the second healthcare antitrust action the Antitrust Division has brought this year.