• 3,000 firms
  • Independent
  • Trusted
Save up to 70% on staff

News » Epic Systems hit with antitrust lawsuit by Particle Health

Epic Systems hit with antitrust lawsuit by Particle Health

epic-systems-antitrust-lawsuit
Photo from HIMSSMedia

WISCONSIN, UNITED STATES — Epic Systems, a prominent electronic health record (EHR) vendor, faces an antitrust lawsuit from intelligent data platform Particle Health. 

The lawsuit, filed in the Southern District of New York, alleged that Epic leveraged its dominant position in the EHR market to stifle competition and restrict access to patient data for Particle’s clients

Particle Health claimed that Epic used its control over patient information to undermine its business. The startup specializes in facilitating data sharing and analysis for healthcare organizations and recently entered the payer platform market, which assists insurers in accessing and analyzing medical records.

Allegations of anticompetitive behavior by Epic

According to the lawsuit, Epic is accused of denying health data access to Particle’s customers, effectively blocking competition in the emerging payer market. The lawsuit stated that Epic launched a “multi-pronged campaign” to destroy Particle’s growth and eliminate competition.

The conflict escalated earlier this year when Epic reportedly cut off data requests from some Particle customers, citing unauthorized uses of patient information and potential privacy risks. Particle argues that this move was part of Epic’s strategy to maintain its dominance and prevent new entrants from gaining a foothold in the payer platform sector.

Scrutiny of Epic’s business practices

In March, Epic Systems came under increased scrutiny regarding its methods for maintaining its dominant position in the EHR market. Although Epic’s market share remains below the 50% threshold generally associated with monopolistic status, a report by Forbes identified several practices by the company that approach monopolistic behavior. These practices include:

  • Artificially inflating costs for third-party vendors
  • Enforcing non-compete clauses and a network of non-solicitation agreements
  • Raising fees to unsustainable and anticompetitive levels
  • Utilizing bundling, tying, and specific pricing strategies
  • Appearing to favor certain market participants over others
  • Engaging in vertical market manipulation
  • Suppressing competition through the introduction of new products

Impact on Particle Health’s business

Particle alleged that Epic’s actions significantly hindered its revenue growth. The startup claimed that Epic’s refusal to share records slowed down the onboarding process for new customers, extending it from two days to over a month. 

Additionally, Particle argued that Epic’s public statements about data security risks have damaged its reputation and eroded public trust.

The dispute also involved Carequality, an interoperability framework that facilitates the exchange of health documents. Epic initiated a dispute process with Carequality, questioning Particle’s reasons for requesting records. This process lasted over five months and required Particle to implement a corrective action plan.

Epic’s defense against allegations

Epic has dismissed the lawsuit as “baseless,” asserting that it complies with all relevant regulations regarding data sharing under HIPAA. In a statement to Healthcare Dive, an Epic spokesperson said that the company’s software is “open and interoperable,” allowing healthcare organizations to share data securely. 

“Epic will continue to protect patient privacy and vigorously defend itself against Particle’s meritless claims,” the spokesperson stated.

Epic added that the lawsuit is an attempt by Particle to divert attention from its own alleged violations of HIPAA privacy protections on the Carequality exchange.

Particle Health is seeking monetary damages and an injunction to stop what it describes as Epic’s anticompetitive conduct. This legal battle underscores ongoing tensions in the healthcare technology sector over data access and market competition.

Read more here.

Start your
journey today

  • Independent
  • Free
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 4000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.

“Excellent service for outsourcing advice and expertise for my business.”

Learn more
Banner Image
Get 3 Free Quotes Verified Outsourcing Suppliers
3,000 firms.Just 2 minutes to complete.
SAVE UP TO
70% ON STAFF COSTS
Learn more

Connect with over 3,000 outsourcing services providers.

Banner Image

Transform your business with skilled offshore talent.

  • 3,000 firms
  • Simple
  • Transparent
Banner Image