The Department of Justice and the Ohio Attorney General’s office filed a civil antitrust lawsuit Friday against OhioHealth, alleging the Columbus-based health system is leveraging its market dominance to stifle competition and inflate healthcare costs.
The lawsuit centers on claims that OhioHealth employs anticompetitive contract terms with insurers, including “anti-steering” provisions and “all-or-nothing” contracting strategies. Regulators argue these practices prevent insurers from offering more affordable plans and limit the ability of other hospitals to negotiate competitive pricing, ultimately harming consumers.
“Competition for healthcare is vital to all Americans,” stated Omeed Assefi, acting assistant attorney general of the Justice Department’s Antitrust Division. “This lawsuit challenges anticompetitive contract restrictions that prevent consumers from choosing lower-cost health plans and severely limit consumers’ access to price information.”
The action against OhioHealth marks the latest instance of increased government scrutiny of nonprofit health systems and their market power. Similar concerns are currently being investigated elsewhere, including a recent investigation launched by Senators Ron Wyden and Elizabeth Warren into the nursing home practices of UnitedHealth Group, and a whistleblower suit alleging improper use of an artery disease test by UnitedHealth. These investigations, alongside the OhioHealth case, suggest a broader federal focus on potential anticompetitive behavior within the healthcare industry.
The lawsuit against OhioHealth alleges that the health system’s contract terms effectively force insurers to include all OhioHealth hospitals in their networks, even if more cost-effective options exist. The “anti-steering” provisions reportedly prevent insurers from incentivizing patients to choose lower-cost providers.
The Department of Justice’s complaint seeks to halt OhioHealth’s alleged anticompetitive practices and restore competition to the central Ohio healthcare market. OhioHealth has not yet publicly responded to the lawsuit.
Separately, doctors are currently in dispute with Cigna over a new reimbursement policy that could lead to reduced payments for medical services, according to recent reports. This dispute highlights ongoing tensions between healthcare providers and insurers regarding payment rates and access to care.
