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Home » Supports UPMC workers in lawsuit alleging medical monopoly
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Supports UPMC workers in lawsuit alleging medical monopoly

Paul E.By Paul E.October 3, 2024No Comments4 Mins Read
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The Biden administration is defending UPMC workers in an ongoing lawsuit that claims the hospital system uses market advantages to suppress wages and job mobility for health care workers.

The U.S. Department of Justice’s Antitrust Division filed a statement of interest in the case on Monday in response to UPMC’s recent motion to dismiss the case. The ministry asked the court to dismiss the company’s complaint.

“Plaintiffs allege UPMC’s use of power to maintain and expand its power, including engaging in a series of anticompetitive mergers and acquisitions and enforcing employment restrictions to inhibit worker mobility. “We have identified a series of conduct over a long period of time,” the Justice Department said.

The lawsuit, first filed in January by Erie nurses, alleges the hospital system’s $26 billion mergers and acquisitions have created a monopoly in the health care labor market.

“Through a series of strategic acquisitions, UPMC has become the overwhelming leader in hospital medical services and skilled health care workforce employment, significantly reducing competition in both inpatient hospital services and hospital employment.” The complaint states:

The suit alleges that UPMC’s acquisitions of 28 competitors between 1996 and 2018 also led to a decline in health care services as the nonprofit closed four hospitals and downsized three others. claims. The lawsuit further alleges that the hospital system’s market dominance has led to wage suppression, unfair working conditions and chronic staffing shortages.

The plaintiffs allege that UPMC uses non-compete clauses to blacklist departing employees and prohibit them from employment at another UPMC facility.

“If UPMC were exposed to competitive market forces, it would hire more workers to avoid a decline in the care it provides to patients and to prevent it from losing patients to competitive competitors. would have needed to increase wages to attract and provide higher staffing levels and higher quality care,” the complaint states.

The complaint sought class action status on behalf of registered nurses, certified practical nurses, medical assistants and health care workers.

UPMC is Pennsylvania’s largest private employer with more than 40 hospitals, controlling more than 76% of all hospital employees in Pittsburgh and more than 67% of all hospital employees in Allegheny County.

The antitrust lawsuit alleges that UPMC has monopoly power over hospital services, while operating as a monopoly and exercising undue influence over its employees. They also criticize it.

A UPMC spokesperson said Wednesday that the plaintiffs’ claims are “factually incorrect and legally baseless.” In the company’s motion to dismiss the lawsuit in July, its lawyers argued that the acquisition had been “widely publicized and scrutinized by government agencies.”

The complaint argues that the plaintiffs filed their antitrust claims too late, calling the claims “a long and trite list of run-of-the-mill employment complaints” rather than antitrust violations.

Spokesman Paul Wood said Wednesday that UPMC is “one of the best places to work in all of Pennsylvania, New York and Maryland, with wages and employee benefits that exceed industry averages, and we are hiring across all regions. It is designed to support 100,000 employees across the world.” UPMC Health System and their families. ”

But the Justice Department said in a Monday filing that UPMC misunderstood the law.

The department also warned that if the court sides with UPMC and “overturns longstanding precedent,” it could have far-reaching implications for other labor markets. The Justice Department opposes giving employers “blank checks to exercise illegally acquired market power, which could result in lower wages and worse working conditions in concentrated markets.” “There is,” he claimed.

The Justice Department goes on to argue that monopolizing power in the labor market can eliminate competition among employers to hire and retain workers, and that such competition is “unlikely to exist in a properly functioning market-based economy.” “It’s the foundation,” he said.

The submission states that a competitive labor market is particularly important when it comes to healthcare workers.

“These workers not only represent a significant portion of overall employment, but they also provide critical services that impact the health and well-being of the American people,” the filing states. “Their competition for labor is undermined, resulting in lower wages and worse working conditions, which in turn harms the health of the population.”



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