By Mike Scarcella
July 28 (Reuters) - A union health plan has sued NewYork-Presbyterian, one of the largest U.S. hospital systems, for allegedly restricting commercial health plans and insurers from steering members to rival providers that might offer more affordable care.
The proposed class action was filed on Friday in federal court in Manhattan by the Cement and Concrete Workers DC Benefit Fund, which provides health benefits to more than 1,700 members.
The complaint alleged NewYork-Presbyterian (NYP) is violating federal antitrust law by imposing contract terms on health plans and insurers that forbid them from offering financial incentives and other motivations for members to receive care from competitors.
The union health plan said it has paid more for hospital services than it would have in a competitive market.
“NYP has engaged in some of the most flagrantly anticompetitive contracting and negotiating tactics of any hospital system in America,” the lawsuit said.
NewYork-Presbyterian and attorneys for the labor union health plan did not immediately respond to requests for comment.
Nonprofit NewYork-Presbyterian’s affiliates include Columbia University Irving Medical Center and Weill Cornell Medical Center. NewYork-Presbyterian says it sees more than 2 million visits annually. The lawsuit said the hospital system's 2023 operating revenue was $12.5 billion.
The U.S. Justice Department in 2018 settled an antitrust lawsuit against a hospital in North Carolina that was accused of discouraging patients from using lower-cost alternatives. The hospital agreed to end anti-steering provisions from its insurer contracts.
Data from one of New York’s largest unions showed NewYork-Presbyterian charged about $41,000 for cesarean-section deliveries, according to the lawsuit, compared with $30,000 at rival Mount Sinai Health System.
The union health plan said it is seeking unspecified monetary damages and a court order prohibiting any continued anticompetitive conduct. The plaintiff said it had paid millions of dollars at "supercompetitive price levels" to NewYork-Presbyterian.
The lawsuit estimated a class of at least thousands of members.
The case is Cement and Concrete Workers DC Benefit Fund v. The New York and Presbyterian Hospital, U.S. District Court for the Southern District of New York, No. 1:25-cv-06140.
For plaintiff: Jamie Crooks and Yinka Onayemi of Fairmark Partners, and Frank Schirripa and Scott Jacobsen of Hach Rose Schirripa & Cheverie
For defendant: No appearance yet
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(Reporting by Mike Scarcella)