Healthcare Software Company Epic Faces First Antitrust Suit For Alleged Monopoly Activity

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Epic System Noticias

Particle,Judy Faulkner,Electronic Health Records

Katie Jennings is a senior writer at Forbes covering healthcare, technology and AI and a co-author of the InnovationRX newsletter. She joined Forbes in 2020 and is based in Jersey City.

Particle Health, a startup that helps retrieve and analyze medical records, has alleged Epic is a “monopolist” in the electronic health data market. But experts say it’s a hard case to win and there won’t be a “smoking gun.”Particle Health, a startup that helps retrieve and analyze medical records, has alleged Epic is a “monopolist” in the electronic health data market.t Epic System’s annual meeting in August, founder and CEO Judy Faulkner announced four new customers.

Epic, which generated $4.9 billion in revenue in 2023, is the dominant player in the hospital EHR market with its software used by 51.5% of the 890,000 hospital beds in the U.S., according to the health IT consultancy KLAS; it was the only EHR vendor to “achieve a net increase in market share” in 2023. The next closest competitor Oracle, through its acquisition of Cerner, holds 23.8% of hospital beds and Meditech has 13.4%.

Particle is alleging violations of Section 2 of the antitrust doctrine known as the Sherman Act. Richman said it’s similar to the lawsuit the Department of Justice brought against Microsoft in the 1990s, saying it was using its monopoly power in operating systems to quash the nascent market of internet browsers.here are no hard and fast rules for what percentage of market control constitutes a monopoly. These types of cases are “hard to win,” said Richman.

Each time Particle’s customers want to turn the faucet “on” from a particular hospital or doctor’s office, it needs to submit confirmation that the purpose of the data exchange is related to treating a patient. Particle started working with health insurance customers who are both healthcare providers and payers, so it was able to receive the patient data under the “treatment” rules.

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