DOJ Backs Claims of UPMC’s Monopolistic Practices

The University of Pittsburgh Medical Center (UPMC) is under scrutiny as the U.S. Department of Justice (DOJ) has backed a lawsuit alleging that the institution exerts illegal control over its workforce. This legal challenge claims that UPMC has used a series of acquisitions and restrictive employment contracts to monopolize the labor market in the healthcare sector.

In a recent filing in the U.S. District Court for the Western District of Pennsylvania, the DOJ urged the court to dismiss UPMC’s attempts to counter the workers’ claims. According to Bloomberg, the department emphasized that accepting UPMC’s arguments could grant “monopsonist employers a blank check to wield unlawfully acquired market power.” This, the DOJ warns, could lead to reduced wages and deteriorating working conditions for healthcare workers, impacting tens of thousands of employees and hundreds of thousands of patients.

The lawsuit accuses UPMC of imposing restrictive noncompete agreements on its physicians and leveraging mergers and acquisitions to strengthen its market dominance over employees. It further claims that nurses have been required to take on additional patient loads without corresponding pay increases. The DOJ criticized UPMC for what it describes as a misinterpretation of relevant legal standards pertaining to the case.

As the largest private employer in Pennsylvania, UPMC employs approximately 95,000 individuals and generates around $26 billion in annual revenue. The plaintiffs in the lawsuit are seeking class action status on behalf of thousands of current and former healthcare workers associated with the center. Despite the serious allegations, UPMC has denied any wrongdoing and has not yet provided a comment regarding the DOJ’s involvement or the ongoing lawsuit.

The DOJ’s intervention highlights the Biden administration’s broader strategy to leverage antitrust regulations against practices that it perceives as harmful to workers. As this case progresses, it underscores ongoing concerns about the balance of power between large healthcare providers and their employees.

Source: Bloomberg