


The Justice Department is investigating whether the renowned NewYork-Presbyterian health system violated antitrust laws through hidden deals with insurance companies that kept hospital prices high, according to a subpoena reviewed by The New York Times.
The civil investigation is examining whether NewYork-Presbyterian persuaded insurance companies to agree to conditions that insulated the hospital system from competition — which would enable it to charge more for common procedures with little worry about losing patients.
The federal investigation is likely to send a jolt through some of the city’s biggest hospitals and the health insurance companies that negotiate with them. The administrative subpoena states that the review seeks to determine if there has been “potential unlawful agreement between NewYork Presbyterian Health Care System and health insurance companies relating to steering restrictions and contracting conduct.”
The investigation is examining a corner of the health industry that has received little attention from antitrust investigators, outside of cases in North Carolina and California in recent years: the negotiations between hospitals and insurers to build a network of providers.
NewYork-Presbyterian includes two of the city’s most storied medical institutions: Columbia University Medical Center and Weill Cornell Medical Center. The hospitals are affiliated with the medical schools of Columbia and Cornell.
The inquiry could lead to more spirited competition among New York City’s leading hospital systems, which might translate into lower prices for childbirth, knee replacements, colonoscopies and other common medical care.