The Department of Justice’s Antitrust Division, alongside the U.S. Attorney’s Office for the Southern District of New York, has filed a civil antitrust suit against New York-Presbyterian, alleging the hospital system used contractual restrictions that limited access to lower-cost healthcare options. The case, United States Of America v. New York Presbyterian Hospital, is an important marker of where federal healthcare enforcement appears to be headed: closer scrutiny of contract terms that may steer patients away from cheaper alternatives and preserve market power for dominant providers.

According to the government, the challenged restrictions allegedly prevented health plans from offering or promoting more affordable options that would exclude or limit New York-Presbyterian’s participation.