Hartford HealthCare Faces Antitrust Lawsuit, Monopoly Allegations
The healthcare antitrust lawsuit alleges that the health system has created a monopoly on inpatient hospital care through anticompetitive actions.
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- Six Connecticut residents have filed a healthcare antitrust lawsuit against Hartford HealthCare (HHC), alleging that the health system used unlawful and anticompetitive methods to charge payers and patients higher rates for care.
The plaintiffs stated that the health system has restrained trade and created a monopoly on acute inpatient hospital services throughout Connecticut. According to the lawsuit, Hartford HealthCare’s actions violated the Connecticut Antitrust Act and the Connecticut Unfair Trade Practice Act.
The health system operates a handful of hospitals across the state, including several hospitals that commercial health plans must include in their provider networks to deem their insurance products commercially viable.
The plaintiffs alleged that the health system used an “all-or-nothing” approach and said that if commercial health plans wanted to include these necessary hospitals in their network, they must include other Hartford HealthCare facilities and services as well.
These additional facilities included hospitals in more competitive markets with higher prices for routine procedures, such as Hartford Hospital.
The lawsuit also claimed that Hartford HealthCare used anticompetitive contracting that prevented consumers from seeking care at other hospitals where services may have been less expensive or better quality.
According to the plaintiffs, the health system instructed commercial payers to withhold truthful information that could encourage members to seek healthcare services at facilities in competition with Hartford HealthCare.
“HHC’s anticompetitive conduct has forced patients and employers in Connecticut to pay higher prices for routine services that are often available at other hospitals only minutes away for substantially less,” the lawsuit stated.
“As a result, Connecticut patients and employers are overcharged tens of millions of dollars every month by HHC. These overcharges come in the form of premiums, deductibles, coinsurance, and copays that are substantially higher than they would be absent HHC’s anticompetitive conduct.”
In addition, the plaintiffs asserted that while Hartford HealthCare’s prices are higher, the quality of care it provides is worse compared to competitors.
According to the plaintiffs, in a healthy market, commercial payers could threaten to remove the expensive facilities from their network, forcing Hartford HealthCare to reduce the prices and improve care quality. However, the health system’s “all-or-nothing” contracts have put the payers in a bind, as they cannot remove the high-cost or low-quality facilities from their network without losing the necessary hospitals as well.
The Connecticut residents seek an injunction that prohibits Hartford HealthCare from continuing its anticompetitive actions and furthering its monopoly on inpatient hospital services. Additionally, the plaintiffs seek award damages to compensate for the high care charges and punitive damages for the health system’s misconduct.
The health system is intent on defending itself against the allegations.
“This complaint is without merit. The allegations misrepresent the many ways Hartford HealthCare is working to transform healthcare, building a system of care that is more accessible, has lower-cost options, is a champion for equity, and both attracts and delivers excellence,” HCC said in a statement acquired by Axios.
Earlier this year, Hartford HealthCare faced another antitrust lawsuit. Saint Francis Hospital and Medical Center alleged that the health system attempted to monopolize the market by acquiring physician practices and requiring them to refer all cases to Hartford HealthCare, regardless of whether it was the best option.
A handful of hospitals and health systems have faced antitrust lawsuits in the past few years.
In August 2021, residents in North Carolina alleged that HCA Healthcare’s Mission Health ran a monopoly business, leading to increased hospital prices, premiums, and out-of-pocket costs for patients.
In March 2021, Sutter Health reached a $575 million settlement for a 2014 case. The United Food and Commercial Workers International Union (UEBT) claimed that the health system’s anticompetitive practices led to unnecessarily high prices for healthcare items and services.
