Justice Department Requires OhioHealth to Stop Using Anticompetitive Healthcare Contract Terms That Raise Costs for Ohio Patients

The Justice Department's Antitrust Division filed a proposed settlement today to resolve the United States' civil antitrust lawsuit against OhioHealth Corporation (OhioHealth) challenging the company's anticompetitive contract restrictions. The proposed settlement would make healthcare more affordable by forbidding OhioHealth from imposing terms in its contracts with commercial health insurers that deter budget-conscious healthcare plans that would lower costs for Ohio consumers and employers.

"Since day one, President Trump and this administration have been laser focused on affordability and cutting costs for the American people," said Acting Attorney General Todd Blanche. "Today's settlement is another example of how this Department of Justice is bringing down healthcare costs for consumers and fighting the anti-competitive behavior that drove them up in the first place."

"Providing affordable healthcare to Americans is uncontroversial and this Department of Justice will not tolerate corporate prioritization of revenue in contravention of our antitrust laws," said Associate Attorney General Stanley Woodward. "This settlement reduces costs and brings back competition in the healthcare system and we are proud of the work of the Antitrust Division in reaching this successful outcome."

This litigation and the proposed settlement, which the State of Ohio joined, are part of the Antitrust Division's ongoing enforcement efforts to promote competitive healthcare markets.

"As I stated when we filed this lawsuit, healthcare competition is critical," said Acting Assistant Attorney General Omeed A. Assefi of the Justice Department's Antitrust Division. "This settlement will secure lower healthcare costs for Ohioans, and ending these anticompetitive contract terms will restore competition for patients in the Columbus area."

"The Antitrust Division is fully committed to our important work in making healthcare affordable for our nation's patients and employers," said Deputy Assistant Attorney General Nicole Sarrine of the Justice Department's Antitrust Division. "We are incredibly proud to have achieved this strong result for Ohioans."

As alleged in the United States' complaint, OhioHealth has used its market power to enact contractual restrictions that encumber or fully preclude insurers from offering innovative and budget-conscious health-insurance plans or plan features. OhioHealth has made insurers include OhioHealth in all of the networks for the commercial insurance products they offer, irrespective of OhioHealth's prices versus those of its competitors. Purchasers of health insurance in Ohio have therefore been left with fewer choices and higher prices.

If approved by the court, the proposed consent judgment would:

• Void OhioHealth's existing contract provisions that prohibit or deter insurers from offering innovative and budget-conscious health-insurance plans or plan features;
• Prevent OhioHealth from seeking or obtaining such contract provisions in the future;
• Prevent OhioHealth from penalizing or threatening to penalize health insurers from offering innovative and budget-conscious health-insurance plans or plan features; and
• Appoint a monitor for a five-year term and impose obligations on OhioHealth to submit regular reports to the Antitrust Division to ensure compliance with these remedies.

As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any interested person should submit written comments concerning the proposed settlement within 60 days following the publication to Jill Maguire, Acting Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, DC 20530. At the conclusion of the public comment period, the U.S. District Court for the Southern District of Ohio may enter the final judgment upon finding it is in the public interest.

OhioHealth owns or manages 16 hospitals and outpatient facilities throughout the State of Ohio.