DOJ Sues New York-Presbyterian Hospital for Anticompetitive Contracts

DOJ News

Filed March 26th, 2026

Detected March 26th, 2026

Summary

The Justice Department has sued New York-Presbyterian Hospital for allegedly violating antitrust laws through anticompetitive contract restrictions. The lawsuit aims to reduce healthcare costs in New York by challenging practices that limit competition and prevent the development of budget-conscious health plans.

View original document View source feed page

What changed

The Department of Justice, in conjunction with the U.S. Attorney's Office for the Southern District of New York, has filed a civil antitrust lawsuit against New York-Presbyterian Hospital. The suit, filed in the U.S. District Court for the Southern District of New York, alleges violations of Section 1 of the Sherman Act due to contractual restrictions that prevent insurers and employers from offering lower-cost health insurance plans to New Yorkers. These restrictions allegedly insulate New York-Presbyterian from price competition and hinder rivals from competing on price or value.

This action seeks to enjoin New York-Presbyterian from continuing these anticompetitive practices, with the ultimate goal of reducing healthcare costs for New York residents. Regulated entities, particularly hospital systems and healthcare providers, should review their contractual agreements with payors to ensure compliance with antitrust laws and avoid similar litigation. The lawsuit highlights the DOJ's ongoing commitment to promoting competition in healthcare markets to ensure affordable and high-quality care.

What to do next

Review hospital system contracts with payors for anticompetitive clauses.
Ensure contracts do not restrict the offering of budget-conscious health plans.
Consult legal counsel regarding antitrust compliance in healthcare contracting.

Source document (simplified)

News

Press Release

Justice Department Sues New York-Presbyterian Hospital for Anticompetitive Contracts That Increase Healthcare Costs for New Yorkers

Thursday, March 26, 2026

Share For Immediate Release Office of Public Affairs Lawsuit Seeks to Reduce Healthcare Costs in New York by Eliminating Contractual Restrictions That Impede Competition Between Hospitals and Prevent Development of Budget-Conscious Health Plans The Justice Department’s Antitrust Division, together with the U.S. Attorney’s Office for the Southern District of New York, filed a civil antitrust lawsuit today challenging The New York and Presbyterian Hospital’s (New York-Presbyterian) anticompetitive contract restrictions that deny New Yorkers the choice of lower cost healthcare options.

The complaint, filed in the U.S. District Court for the Southern District of New York, charges New York-Presbyterian with violating Section 1 of the Sherman Act. New York-Presbyterian is the largest and most powerful hospital system in New York City. It owns and operates eight hospitals and many outpatient facilities in the New York City area. The suit seeks to enjoin New York-Presbyterian from imposing contractual restrictions that preclude insurers and employers from offering New Yorkers budget-conscious health insurance plans. This is the second case the Division has brought this year to ensure that Americans can access healthcare markets with robust competition and receive high quality, affordable care.

“Millions of New Yorkers pay more for healthcare because of these anticompetitive practices,” said Attorney General Pamela Bondi. “At the direction of President Trump, this Justice Department will fight relentlessly to ensure that Americans get the healthcare they need without facing exorbitant costs.”

“Healthcare is a vital sector of our nation’s economy that touches the life of every single American,” said Acting Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “New York-Presbyterian has known for years that the American consumer wants budget-conscious health plans that reduce healthcare costs. But rather than offer consumers choice, New York-Presbyterian uses its market power to protect its margins, impede competition from rival hospitals, and prevent employers and unions from creating these plans. The Antitrust Division will continue to hold hospitals violating the antitrust laws accountable. I am grateful for the dedicated work of our staff and the Southern District of New York in this matter.”

“The high cost of healthcare is frustrating to every New Yorker,” said U.S. Attorney Jay Clayton for the Southern District of New York. “Our Office will continue to work with our partners in the Antitrust Division to investigate and confront anticompetitive practices that contribute to higher healthcare costs.” ****

As alleged in the complaint, New York-Presbyterian imposes plan restrictions in its contracts with payors that prevent payors from offering plans that, for example, do not include New York-Presbyterian or do not feature New York-Presbyterian in the most favored tier of the plan. New York-Presbyterian even forbids payors from offering lower copays when patients chose to receive care at New York-Presbyterian’s — often lower priced — rivals. These unlawful restrictions insulate New York-Presbyterian from price competition, limiting its rival hospitals from competing for patients based on lower prices or better value, and prevent the development of budget-conscious plans for New Yorkers that are available in other parts of the United States.

Updated March 26, 2026 Topic Antitrust Components Office of the Attorney General Antitrust Division Press Release Number: 26-290