Antitrust lawsuit against UPMC alleges monopoly status stifles wages and services
PITTSBURGH (KDKA) -- A former nurse has filed an antitrust class action lawsuit against UPMC that she hopes will ultimately include all the health system's nurses.
The accusation is straightforward: by acquiring 28 health care systems over at least two decades, UPMC has become a monopoly, eliminating competition so they can dictate wage scales and cut health care services.
"UPMC has a monopoly in western Pennsylvania, where through their acquisitions, they control the market," said Daniel Levin, the attorney for former UPMC nurse Victoria Ross.
"With that monopoly, UPMC is depressing the wages and decreasing the market," Levin added.
Ross filed an antitrust class action lawsuit against UPMC, alleging that through its monopoly, UPMC has closed four hospitals, downsized three other hospitals and eliminated 1,800 full- and part-time jobs as it cut services.
"These allegations are more systematic in rural and smaller communities because they have less competition. I think in Pittsburgh we allege they control in excess of 50% of the market. But then you go to some of the smaller communities, it's upward of 90% of the market," Levin said.
Paul Wood, a spokesperson for UPMC, refuted these claims, first noting that UPMC offers high paying jobs with good benefits, stating, "There are no other employers of size and scope in the regions we serve that provide as good paying jobs at every level with excellent benefits than UPMC."
Wood added, "UPMC is moving to $18 per hour for our non-union workforce by 2025. This is the highest entry-level of any health care provider in the state," noting, "UPMC was the first health system in Pennsylvania to offer to our employees who are new parents paid parental leave. And, we offer assistance for child and senior care services."
As for hospital closures like Braddock Hospital, UPMC insists that results because those hospitals lose customers.
Levin says through discovery, the plaintiffs will be able to get the true story of what's happening at UPMC.
"Because they control the market, they're able to limit the opportunities for nurses and decrease their wages and work environment," Levin said.
UPMC attorneys have not yet responded officially to this 44-page federal court complaint.