Data-blocking antitrust lawsuit against Epic can move forward, judge rules
A U.S. district court in Manhattan on Friday denied a request by Epic Systems to have a lawsuit brought by a startup dismissed. The EHR giant will now have to face allegations in court that it violated antitrust laws.
The lawsuit against Epic was filed by Particle Health, an IT startup that develops technology to improve data interoperability. The company alleged that Epic engaged in information blocking in an attempt to destroy competitors, especially those that improve data sharing.
In her ruling, Judge Naomi Reice Buchwald partially agreed, writing that evidence showed Epic was “sufficiently anticompetitive” to justify the lawsuit moving forward. However, she did dismiss some of the antitrust claims made by Particle, in addition to its accusation that it was the victim of defamation.
Epic had previously said Particle’s data sharing practices were a violation of the provisions of the Health Insurance Portability and Accountability Act (HIPAA) and that the startup was putting patient privacy at risk. It also denied engaging in any data blocking.
"Epic’s software is open and interoperable, allowing healthcare organizations to easily share data under HIPAA and all relevant regulations,” an Epic spokesperson said when Particle's lawsuit was announced in Sept. 2024. “Epic will continue to protect patient privacy and vigorously defend itself against Particle’s meritless claims."
At the heart of the lawsuit is the question of how data is shared between providers and insurers. Particle maintains that Epic is raising the cost of care by blocking third parties from easily exchanging that information, much of which is locked in medical records stored in Epic’s EHR.
In its court filing, Particle said Epic controls the health data of 94% of Americans, meaning it is crucial that it be shared if any other companies are to survive in the space.
Particle said it was unable to access Epic’s patient data for its payer platform, which ultimately resulted in lost business. Further, the EHR vendor is accused of steering customers away from Particle and toward Epic’s own payer service offering.
Both companies claim victory
Particle Health CEO Jason Prestinario wrote on LinkedIn that he was “very pleased” with Buchwald’s ruling:
“While a few of the claims didn't survive, Epic's motion to dismiss was denied on all three of the core monopolization antitrust claims. This is the first time in Epic's history that an antitrust case against them has gotten to this point. It's the next step to a bigger victory for better patient care and more patient control of their medical info,” he wrote.
Epic, on the other hand, framed the ruling as a victory for its interests, writing that the “court dismissed the majority of Particle’s claims.”
“Epic has worked and will continue to work to protect the privacy of patients’ data. We look forward to the opportunity to present evidence to prevail on the remaining claims,” the company wrote.
A trial date has yet to be set.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.