A Hartford, Conn.-based health system is under scrutiny again for alleged anticompetitive behavior with its physician acquisition strategy.
Hartford residents sued Hartford HealthCare Corp. Feb. 14 alleging the health system has used "unlawful and anticompetitive methods to restrain trade, to acquire a monopoly on acute inpatient hospital services in many key regions of the state, and to abuse the monopoly by using it to extract higher prices from insurers, employers and patients throughout the areas it does business."
The residents say that because Hartford HealthCare owns and operates inpatient services, outpatient clinics and other healthcare services, the health system can use its market power to increase rates for insurers, employees and health plan members.
The lawsuit also accuses Hartford HealthCare of contracting with health plans to encourage patients to get care within its network instead of competitors', which may have lower cost or higher quality care. The residents allege Hartford HealthCare overcharges employers and patients tens of millions of dollars per month in premiums, coinsurance, deductibles and copays.
"[Hartford HealthCare] uses non-compete provisions and punitive referral tactics with physicians it employs, and gag clauses with the insurers it contracts with, all of which are designed to further stifle competition and transparency," the lawsuit alleges.
Hartford HealthCare was hit with a lawsuit in January accusing it of anticompetitive behavior. Hartford-based Saint Francis Hospital and Medical Center alleged Hartford HealthCare requires primary care physicians to keep referrals within its network in its Jan. 11 lawsuit. Saint Francis also accused Hartford of telling physicians who refused to join the system that it would recruit physicians to compete against them.