Epic sued over alleged 'scheme to destroy' managed care company

Managed care services company CureIS has filed a lawsuit in California against Epic Systems, alleging that the market-leading EHR company has carried out a “multi-prong scheme to destroy” its business.

The lawsuit claims that Epic engaged in data blocking, allegedly citing security concerns. Broadly, the EHR vendor is accused of making it difficult for CureIS to serve its customers, which manage government healthcare plans such as Medicare and Medicaid. 

CureIS provides technology support to manage billing and support the revenue cycle for entities that accept government insurance. According to lawyers representing CureIS, Epic sees this aspect of CureIS's business as direct competition.

They allege that Epic has interfered with CureIS’s customer relationships, allegedly making false statements about the company’s reputation and the security of its products. These actions, the lawsuit claims, caused CureIS to lose a long-standing service contract.

CureIS, the sole plaintiff in the case, asserts that Epic’s anti-competitive practices violate California law and the 21st Century Cures Act, which governs data sharing and prohibits blocking data necessary for developing new innovations in patient care. In this case, CureIS relies on patient data for 280 million individuals to help its customers manage care for Medicare and Medicaid patients and claims Epic is unlawfully withholding this data.

"By wielding its power to destroy healthcare technology innovators like CureIS, Epic is feeding its need for more and more cash, even if it means depriving those in the most need of the best possible options for healthcare services," attorneys for the plaintiff wrote in the complaint.

The lawsuit also contends that Epic is violating its contractual agreements in developing its own version of CureIS’s products in an attempt to eliminate the smaller company from the market.