Epic sued by interoperability startup following dispute over patient data
Medical record interoperability startup Particle Health has filed a lawsuit against Epic Systems, accusing the electronic health record (EHR) king of violating federal antitrust laws. Particle claims Epic’s business practices allow it to unfairly control patient records, which negatively impacts companies attempting to improve the exchange of important medical information.
In an announcement, Particle accused Epic of monopolistic practices by “using its dominance in the EHR market to prevent competition in the payer platform market.” The interoperability startup argued healthcare payer records are key to developing “scalable systems for analyzing health records” that could then be used to improve patient care.
Particle, which was founded in 2018, entered the payer platform market in 2023. Earlier this year, Epic stopped providing Particle users access to patient data from its Carequality exchange, arguing the requests posed privacy and security risks due to the startup allegedly sharing data with third-parties not involved in patient care.
The dispute has been going on for the last six months, Particle said, adding its lawsuit aims to disincentivize Epic from continuing to cut off companies who rely on access to patient data. Particle stated it believes Epic was acting maliciously to “squash” the company and “snuff out” other competitors by denying requests for data access.
Epic has data from almost everyone
Epic has long dominated the EHR market. In 2023, it was the only vendor to increase its cumulative customer base. An estimated 94% of all patients in the U.S. have records stored on Epic servers, giving the company an unprecedented level of control over patient information needed for research and care initiatives, Particle argued in its complaint.
“Our health care system stands at a crossroads,” Particle Health CEO Jason Prestinario said in a statement. “Timely and complete medical information is critical to effective care. Regrettably, Epic is hoarding the data, showing how it can rapidly seize control of all markets that depend on the clinical records that rightfully belong to patients.”
In a response, Epic said the lawsuit and underlying claims made by Particle are "baseless."
"This lawsuit attempts to divert attention from the real issue: Particle’s unlawful actions on the Carequality health information exchange network violated HIPAA privacy regulations," a spokesperson for Epic told HealthExec. "Particle’s complaint mischaracterizes Carequality’s decision, which in fact proposes banning Particle customers that were accessing patient data for impermissible purposes."
The spokesperson added, "Epic’s software is open and interoperable, allowing healthcare organizations to easily share data under HIPAA and all relevant regulations. Epic will continue to protect patient privacy and vigorously defend itself against Particle’s meritless claims."
Particle is being represented by Quinn Emanuel Urquhart & Sullivan, who intend to argue Epic’s business practices violate the Sherman Antitrust Act. A timeline was not provided for when legal proceedings are expected to commence.
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.