UPMC Accused of Worker Monopoly: DOJ Steps In with Letter of Interest
A federal lawsuit has been filed against the University of Pittsburgh Medical Center (UPMC), accusing the healthcare giant of monopolizing the workforce in the region. The case has attracted the attention of the Department of Justice (DOJ), which has submitted a letter of interest indicating its stake in the proceedings.
The class action lawsuit, initiated by a former nurse from Erie, claims that UPMC has acquired 28 healthcare systems, thereby establishing a monopoly not only over patients but also over workers. The allegations include the closure of hospitals, the use of non-compete clauses, and the alleged blacklisting of former employees from securing new jobs.
Phil DiLucente, a lawyer with experience in similar cases, emphasized the core issue: “The fundamental question is whether quality healthcare is being maintained and if there’s a monopolization in the labor market.” He noted that while the DOJ’s involvement may not immediately affect the case’s direction, it does signal a significant interest in the potential ramifications of UPMC’s market power.
According to Pat Garofalo, director of state and local policy for the American Economic Liberties Project, the DOJ’s scrutiny is particularly important as it examines monopolistic practices affecting workers, an area often overlooked in antitrust cases, which typically focus on consumer impacts. “It’s crucial for the region and the healthcare landscape in Pennsylvania to establish limits on UPMC’s influence,” Garofalo stated.
In response to the lawsuit, UPMC issued a statement rejecting the claims, asserting, “UPMC is recognized as one of the best places to work in all the regions we serve in Pennsylvania, New York, and Maryland, offering above-industry-average wages and comprehensive employee benefits.” The organization described the lawsuit’s allegations as “factually incorrect and legally unfounded.”
DiLucente clarified that the DOJ’s role at this stage is largely observational. “For now, they are taking a backseat and monitoring the situation, particularly the responses from UPMC,” he explained.
Support for the DOJ’s involvement has been voiced by U.S. Representatives Summer Lee and Chris Deluzio, indicating a broader concern over the implications of UPMC’s market dominance on healthcare delivery and employment conditions in Pennsylvania.
