Department of Justice files letter of interest in case accusing UPMC of holding monopoly over workers
PITTSBURGH (KDKA) — A federal lawsuit accuses UPMC of holding a monopoly over workers, and now the Department of Justice is involved.
The Department of Justice filed a letter of interest in this case, which, according to law experts, is exactly what it sounds like. The DOJ has interest in how the situation plays out.
The class action lawsuit was brought by a former nurse in Erie. It accused UPMC of acquiring 28 health care systems and becoming not only a monopoly for patients but for workers as well.
It also accuses UPMC of closing down hospitals, having non-compete clauses and allegedly blacklisting former employees from getting other jobs.
"The whole issue of this case comes down to: is great healthcare still being administered and is there a monopolization of the labor market?" said lawyer Phil DiLucente, who isn't involved in this case.
DiLucente has represented people on both sides of similar cases in the past. He said the DOJ involvement doesn't change much for either side right now. The DOJ has called for this case to not be dropped. They feel monopolizing power in a worker's market can lower working conditions and have a trickle-down effect.
"That all trickles down into the community. So even though this case is about the workers, it's really about health care in Pennsylvania," said Pat Garofalo, the American Economic Liberties Project director of state and local policy.
Garofalo said the antitrust policy the DOJ is looking at in this case is rarely used. Monopolies mostly are looked at in terms of the consumer and not as often in terms of workers.
"So it's really important for the region and for the health care of folks in Pennsylvania that a grip on UPMC's power be established," Garofalo said over Zoom.
UPMC says the claims in the lawsuit hold no water, issuing this statement:
"UPMC is among the best places to work in all the regions we serve throughout Pennsylvania, New York and Maryland due to above-industry-average wages and employee benefits, which are designed to support the 100,000 people employed throughout the UPMC health system and their families. As we have made clear in our motion to dismiss, the plaintiffs' allegations are factually incorrect and legally unfounded."
DiLucente said the DOJ will be hands off for the time being in this lawsuit.
"At this time, it's really an observation type of mode because of the complaint and particularly the response by UPMC," DiLucente said.
Both U.S. Reps. Summer Lee and Chris Deluzio gave their support for the DOJ's involvement.
