Texas Targets Epic Systems for Alleged Monopoly in Health Records
The legal landscape for electronic health records is heating up as Texas Attorney General Ken Paxton files a lawsuit against Epic Systems, accusing the company of monopolistic practices and impeding access to medical records. This move adds to the ongoing scrutiny Epic faces in the realm of antitrust concerns.
According to the lawsuit, Epic Systems, based in Verona, is allegedly using its dominant position in the electronic health records market to stifle competition and limit parental access to their children’s health information. Paxton’s filing claims that Epic operates a “monopoly” by following an “anticompetitive playbook” aimed at maintaining its influence over the industry.
In a statement regarding the lawsuit, Paxton emphasized the importance of safeguarding parental rights, saying, “We will not allow woke corporations to undermine the sacred rights of parents to protect and oversee their kids’ medical well-being.” He asserts that the lawsuit seeks to ensure Texans can easily access health records and benefit from a competitive market. You can read Paxton’s full statement here.
Epic Systems, however, disputes the claims, labeling the allegations as “flawed and misguided.” The company argues that it does not control parental access to medical records, attributing these decisions instead to healthcare providers.
Paxton, a Republican figure with a history of litigation, has previously taken legal action against the Biden administration, including efforts to challenge the 2020 presidential election results. His legal maneuvers have been numerous, reaching at least 100 lawsuits against the federal administration.
The lawsuit alleges that Epic has entrenched itself as a “gatekeeper” of patient data, with over 325 million records under its control, representing a vast majority of U.S. citizens. The state contends that hospitals find it nearly impossible to switch from Epic’s system due to prohibitive costs and time commitments, effectively locking them into long-term contracts.
Further accusations suggest that Epic imposes “massive penalty fees” to discourage hospitals from adopting competitor systems, and that it restricts access to patient data for potential competitors. The lawsuit argues Epic’s actions not only stifle competition but also negatively impact patients, citing software configurations that allegedly remove parental access to minors’ records in violation of Texas law.
Epic, countering these claims, states that its software facilitates extensive data sharing, with systems using Epic having shared data with nearly 1,000 patient-facing apps billions of times over the past year. The company insists that decisions regarding parental access are made by healthcare providers, not Epic itself.
Texas is seeking a court mandate to halt Epic’s purported illegal practices and demands financial penalties and damages from the company. The full lawsuit is available for review here.
