Department of Justice Files Cover Letter Accusing UPMC of Employee Monopoly

PITTSBURGH (KDKA) — A federal lawsuit accuses UPMC of having a monopoly on workers, and the Department of Justice is now implicated.

The Department of Justice filed a cover letter in this case, and according to legal experts, that’s exactly what it sounds like. The Department of Justice is interested in how the situation develops.

A class action lawsuit was brought by a former nurse in Erie. She accused UPMC of taking over 28 health care systems and becoming a monopoly not only for patients but also for employees.

It also accuses UPMC of closing hospitals, using non-compete clauses and allegedly blacklisting former employees from finding another job.

“The whole issue of this case comes down to this: Is there still great health care being administered and are we dealing with monopolization of the labor market?” said attorney Phil DiLucente, who is not involved in the case.

DiLucente has represented both parties in similar cases in the past. He said the Justice Department’s involvement doesn’t change much for either side at this point. The Department of Justice called for the case not to be dismissed. They believe that monopolizing power in the labor market can lower working conditions and have a trickle-down effect.

“It all trickles down to the community. So while this issue is about workers, it’s really about health care in Pennsylvania,” said Pat Garofalo, director of state and local policy at the American Economic Liberties Project.

Garofalo said the antitrust policy the Justice Department is considering in this case is rarely applied. Monopolies are viewed mainly from the point of view of consumers, and not so often from the point of view of workers.

“That’s why it’s very important for the region and for the health care of Pennsylvanians to take over from UPMC,” Garofalo said on Zoom.

UPMC claims that the claims in the lawsuit are without merit and releases the following statement:

“UPMC is one of the best places to work in all of the regions we serve in Pennsylvania, New York and Maryland because of its industry-leading wages and employee benefits that are designed to support the 100,000 people employed across the UPMC Health System and their As we clearly explained in our motion to dismiss, plaintiffs’ allegations are factually incorrect and legally without merit.”

DiLucente said the Justice Department will remain silent on the lawsuit for now.

“It’s really in observation mode at this point because of the complaint and especially the response from UPMC,” DiLucente said.

Both U.S. Reps. Summer Lee and Chris Deluzio supported the Department of Justice’s involvement.