On Friday, the Justice Department’s Antitrust Division collaborated with the Ohio Attorney General to file a civil antitrust lawsuit against OhioHealth. They argue that OhioHealth’s restrictive contracts are raising medical costs for patients in Ohio.
Attorney General Pam Bondi expressed, “Americans deserve access to affordable, high-quality healthcare, not restrictive contracts that drive up costs.” She emphasized in a statement that under President Trump’s administration, the Justice Department will persist in legal actions aimed at safeguarding consumers and lowering healthcare expenses nationwide.
The lawsuit has been filed in the U.S. District Court for the Southern District of Ohio. It aims to impose an injunction on OhioHealth, the largest health system in central Ohio, to address allegedly anticompetitive contract practices that undermine medical competition. OhioHealth oversees 16 hospitals and outpatient facilities across the state.
Acting Assistant Attorney General Omeed A. Assefi remarked, “Competition in healthcare is essential for all Americans.”
He further noted, “This lawsuit targets contract restrictions that limit consumers’ options for lower-cost health plans and restrict access to pricing information. These practices are causing many residents in Columbus to pay more for subpar healthcare. Families and consumers in America deserve better, and we are thankful for Ohio Attorney General Dave Yost’s collaboration on this significant issue.”
The Justice Department elaborated on its stance regarding OhioHealth’s alleged anticompetitive actions. According to the complaint, OhioHealth leverages its market position to impose contractual limitations that either prevent or significantly restrict insurers from offering innovative and cost-effective health plans. Typically, they compel insurers to include OhioHealth in-network across all their commercial products, irrespective of how their prices compare to others, thus obstructing the creation of more affordable plans in the Columbus region. Without innovative and budget-friendly options, patients are left with fewer choices and higher costs.
The Department’s lawsuit comes after Senator Amy Klobuchar highlighted concerns that the resignation of Assistant Attorney General Gale Slater might lead to diminished antitrust enforcement within the Justice Department. She cautioned, “It seems that Justice Department leadership is weakening the efforts of antitrust officials who aim to protect consumers and small businesses.”
This lawsuit aligns with recent actions from the Federal Trade Commission (FTC), which reached a pivotal settlement with Express Scripts, claiming their practices led to inflated insulin prices.
According to a FTC press release, “This settlement is anticipated to enhance transparency and cut down patient costs for insulin significantly over the next decade, benefiting community pharmacies as well.”
FTC Chairman Andrew N. Ferguson commented, “The settlement with Express Scripts reflects our commitment to reducing healthcare costs for American patients,” noting that it would eradicate practices keeping drug prices inflated and provide crucial financial relief to countless Americans dependent on prescription medications.
