Epic Systems, a leading provider of healthcare software, was hit with a lawsuit on Monday by startup Particle Health, which alleges that Epic is unlawfully monopolizing the US medical records market, harming patient care, and inflating costs for health plans.
The lawsuit, filed in the US District Court for the Southern District of New York, accuses Epic of violating antitrust laws by undermining Particle’s rival platform.
According to Particle Health, Epic holds significant control over US medical records, with access to data on up to 94% of Americans. The company’s platform supplies this data to third parties, such as healthcare providers and insurers. Particle, which offers a competing platform allowing insurers to retrieve and utilize medical records, claims that Epic has used its dominant market position to coerce customers into avoiding Particle’s services, erecting barriers for new clients.
Particle’s CEO, Jason Prestinario, stated that Epic’s control over health data has stifled innovation, negatively impacting both competition and patient care. The startup is seeking unspecified monetary damages and a court order to ensure competition within the medical records market.
In response, Wisconsin-based Epic dismissed the allegations as “baseless” and vowed to defend itself against the claims. Epic, a privately-held company, has long been a dominant player in electronic health records (EHR), and its payer platform enables insurers to access clinical data for processing claims and streamlining patient information.
This lawsuit marks an escalation in an ongoing dispute between the two companies. Earlier this year, Epic blocked access to some of Particle Health’s customers through Carequality, a national framework for health data sharing used by over 50,000 healthcare organizations. Epic claimed the move was made at the request of its customers, who expressed concerns about potential misuse of protected health information by Particle’s clients. Particle disputes these claims, alleging in the suit that the decision has significantly impacted its revenue.
With input from Reuters and Modern Healthcare.
