DOJ & Ohio Attorney General File Antitrust Suit Against OhioHealth Over Contract Practices

The complaint was submitted to the U.S. District Court for the Southern District of Ohio and seeks to block OhioHealth from enforcing what federal and state officials describe as anticompetitive contractual provisions. According to a statement from the Justice Department, the lawsuit aims to stop OhioHealth from continuing practices that allegedly limit competition and inflate healthcare prices.

OhioHealth, identified in the filing as the largest healthcare system in central Ohio, is accused of leveraging its market position to require insurers to include its hospitals in all of their commercial insurance networks. Per a statement outlining the allegations, these requirements apply regardless of whether OhioHealth offers the most competitive prices compared with rival providers. Officials contend that such provisions prevent insurers from designing lower-cost or innovative health plans that could give consumers more affordable options.

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Read more: Federal Suit by Ohio Physicians Challenging Noncompete Agreements Dismissed for Lack of Antitrust Standing

Attorney General Pamela Bondi said, “Americans deserve low-cost, high-quality healthcare – not anticompetitive hospital system contracts that make healthcare less affordable.” She added that the Department of Justice will continue to pursue legal action aimed at protecting consumers and reducing healthcare expenses nationwide.

Acting Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division emphasized the importance of competition in healthcare markets. “Competition for healthcare is vital to all Americans,” he said. “This lawsuit challenges anticompetitive contract restrictions that prevent consumers from choosing lower-cost health plans and severely limit consumers’ access to price information. These restrictions cause many Columbus residents to pay more for lower-quality healthcare. American families and consumers deserve better. I appreciate the partnership with Ohio Attorney General Dave Yost to challenge these restrictions as we work together to open this important market to the very real benefits of open competition.”

According to a statement accompanying the complaint, the government alleges that OhioHealth’s contractual practices impede or entirely block insurers from offering cost-saving plan structures or features. Officials argue that by mandating inclusion in all insurer networks, the system restricts the development of budget-focused insurance products in the Columbus region. Per a statement from the Justice Department, without the ability to create such plans, employers and patients are left with fewer coverage options and potentially higher healthcare bills.

OhioHealth owns or manages 16 hospitals and outpatient facilities throughout Ohio. The lawsuit seeks injunctive relief that would prohibit the healthcare system from maintaining the disputed contract provisions, with the stated goal of fostering greater competition and enabling patients, employers, and insurers to pursue more affordable healthcare alternatives.

Source: Justice Gov