Fed Backs UPMC Employees in Health Care Monopoly Lawsuit

The U.S. Department of Justice has sided with UPMC workers in an ongoing lawsuit alleging that the $28 billion hospital system has violated workers’ rights and has a monopoly on health care where it operates.

On Monday, the department’s antitrust division filed a statement of interest in the case in federal court in Pittsburgh in response to UPMC’s motion to dismiss the complaint.

Lawsuit filed in Januaryalleged that UPMC’s monopoly on health care led to reduced wages, unfair working conditions and chronic staff shortages.

The complaint filed by an Erie nurse seeks class-action status to represent registered nurses, licensed practical nurses, nursing assistants and paramedics.

The complaint alleged that UPMC’s acquisition of 28 competitors between 1996 and 2018 actually reduced health care services by closing four hospitals and reducing staffing at three others.

The lawsuit also said UPMC used non-compete clauses and anti-rehire blacklists to prevent employees from leaving.

UPMC spokesman Paul Wood said Tuesday that the plaintiffs’ allegations are false.

“UPMC is one of the best places to work in all of the regions we serve in Pennsylvania, New York and Maryland due to industry-leading wages and employee benefits that are designed to support the 100,000 people employed throughout the UPMC Health System and their families ” – he said.

In July, UPMC filed a motion to dismiss the lawsuit, arguing that the plaintiffs misinterpreted antitrust laws and targeted hospitals that were decades ago under tight government control.

“The hypotheses underlying this case contradict ‘judicial experience and common sense,'” they wrote.

In a statement, UPMC lawyers called the plaintiffs’ claims “a long and outdated list of ordinary employee grievances” that do not include substantive antitrust claims.

However, in its motion filed Monday, the Justice Department said UPMC was misinterpreting the state of the law.

In its proposal, the government said the United States has a strong interest in how antitrust laws are applied to labor markets.

“Competition for workers among rival employers increases economic opportunities for all Americans by improving wages, benefits and other working conditions,” they wrote.

However, monopolizing power in labor markets can deprive workers of fair, competitive pay and the ability to negotiate better working conditions – continued.

“Competition between employers to recruit and retain workers is therefore fundamental to a properly functioning market economy,” the government wrote.

As the case files show, this applies especially to the health service.

“Many healthcare workers provide lifesaving care in difficult working conditions. When competition for their labor suffers – resulting in lower pay and even worse working conditions – the nation’s health suffers too.”

The government’s lawsuit urged the court to deny UPMC’s dismissal request, arguing that it would undermine legal precedent and give other employers “a blank check to exercise ill-gotten market power that could result in reduced wages and worse working conditions in concentrated markets.”

In a statement Tuesday afternoon, U.S. Rep. Summer Lee, D-Switzerland, praised the Justice Department’s decision to support the workers.

“Today, the Department of Justice took an important step to stand with workers and hold UPMC accountable for its long history of abuses. “I couldn’t be more proud to support these brave workers as they fight to end the monopolistic practices that have harmed them and our entire region for too long,” Lee said.