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DOJ Probes NewYork-Presbyterian for Potential Market-Blocking Agreements

By  |  July 28, 2025

The U.S. Department of Justice has launched a civil investigation into whether NewYork-Presbyterian, one of the largest and most prestigious hospital systems in the country, may have violated antitrust laws through its contracting practices with major health insurers. The inquiry centers on whether the system used behind-the-scenes agreements to stifle competition and maintain elevated prices for routine medical services, according to the New York Times.

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    The investigation, which has been made public through an administrative subpoena reviewed by the New York Times, seeks to uncover whether NewYork-Presbyterian arranged deals that discouraged insurance companies from steering patients to competing hospitals. Such arrangements, if proven, could have allowed the hospital system to sidestep market pressures that typically help keep healthcare prices in check.

    NewYork-Presbyterian, which includes Columbia University Medical Center and Weill Cornell Medical Center, is affiliated with the elite medical schools of Columbia and Cornell Universities. These affiliations have helped cement the hospital system’s reputation as a leader in medical care. But federal investigators are now scrutinizing whether that prestige has also helped shield it from the kind of competitive forces that are supposed to keep prices for care—such as knee replacements, childbirth, and diagnostic procedures—more affordable.

    Read more: Senior DOJ Antitrust Officials Placed on Leave Amid Internal Turmoil

    Per the New York Times, the subpoena describes concerns about “potential unlawful agreement” involving steering restrictions and contracting behavior between the hospital system and health insurance providers. These agreements may have limited insurers’ ability to offer consumers lower-cost alternatives, potentially locking patients into more expensive care without sufficient options.

    This case highlights a relatively unexplored area of antitrust law in the healthcare sector. While similar cases have been investigated in states like North Carolina and California, federal scrutiny of hospital-insurer contracting practices in New York represents a significant shift. It could have ripple effects across the city’s competitive and high-cost healthcare market.

    If the Justice Department finds evidence of anticompetitive conduct, the outcome could reshape how major hospital systems and insurers operate in the region.

    Source: New York Times