Key facts
- The U.S. Federal Trade Commission is investigating Epic Systems, a company holding medical records for hundreds of millions of Americans.
- The FTC is examining how Epic Systems grants or withholds data access and interoperability.
- A federal judge in New York allowed an antitrust lawsuit against Epic, filed by Particle Health, to proceed with claims of monopolization and monopoly leveraging.
- Epic Systems itself filed a lawsuit accusing companies like Health Gorilla of exploiting interoperability networks to access and sell patient data.
- Telehealth company GuardDog Telehealth admitted to accessing patient records under false pretenses in a settlement with Epic.
The U.S. Federal Trade Commission has launched an antitrust investigation into Epic Systems, a dominant electronic health records company, according to sources familiar with the matter. The FTC is reportedly seeking information on how Epic manages data access and interoperability within the health technology industry.
This probe comes as a federal judge in New York has allowed an antitrust lawsuit filed by Particle Health against Epic to proceed. The judge ruled that Particle presented sufficient evidence to pursue claims of monopolization, attempted monopolization, and monopoly leveraging, while dismissing other claims. Epic stated that the majority of Particle's claims were dismissed and expressed confidence in prevailing on the remaining ones.
Epic Systems itself has also been involved in legal action, filing a lawsuit accusing multiple companies, including health information exchange network Health Gorilla, of exploiting interoperability networks to improperly access and monetize sensitive patient records. Telehealth company GuardDog Telehealth has since admitted to accessing patient records under false pretenses as part of a consent judgment with Epic, acknowledging responsibility for approximately 6,000 records.
The ongoing legal challenges highlight tensions surrounding data sharing, patient privacy, and market dominance in the healthcare technology sector. The "Epic First" strategy adopted by many healthcare providers, which prioritizes Epic's own solutions over third-party vendors, is also being closely watched.