Two health plans filed a proposed class action lawsuit against Hartford (Conn.) HealthCare June 14, alleging unlawful monopolization and price fixing. The health plans allege Hartford's dominance in the area allowed the system to inflate prices.
Hartford denies the accusations. In a statement provided to Becker's, a spokesperson for the health system wrote, "This complaint is without merit, filed by serial plaintiffs' attorneys. We will defend ourselves against the allegations, which fundamentally misrepresent the many ways Hartford HealthCare is working to transform healthcare, including providing best-in-class quality, improved access to care and offering lower-cost options outside of hospitals, like urgent care and ambulatory care centers. Now, as always, we remain focused on serving the needs of our patients and our communities.”
The health system has about 500 locations, employs 41,000 professionals and includes more than 800 physicians and advanced practice providers in its network.
The health plans allege Hartford required them to sign "all or nothing" contracts with the system's facilities and halted incentives for physicians to perform care in the low-cost setting outside of Hartford's network.
The lawsuit also alleges Hartford forced physician practices to join its ICP Providers network and then required them to sign exclusivity contracts preventing them from negotiating separately with health plans.
"Defendants' scheme has substantially foreclosed competition in both general acute care inpatient hospital services and outpatient medical services in several distinct geographic markets within Connecticut," the lawsuit states. "This, in turn, has artificially inflated healthcare costs and prices paid by Plaintiffs and the proposed Class while also impairing the quality of the services provided, thus injuring Plaintiffs and the proposed Class."