DOJ Is Right to Investigate UPMC’s Abuse of Monopoly Power and Harms Against PA Workers

February 2, 2024 Press Release

Washington, D.C. — In response to reports that the Department of Justice Antitrust Division is investigating the University of Pittsburgh Medical Center for abusing its market power to hurt workers, behavior that Economic Liberties and partners detailed in a white paper in January 2023, the American Economic Liberties Project released the following statement.

“We’re thrilled to see the Antitrust Division launch an investigation into Pennsylvania’s most notorious healthcare monopolist,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project. “Story after story that we heard during our research revealed how UPMC has used its power to go on a merger spree, lower wages, degrade working conditions, stop workers from unionizing, and ultimately lower the quality of care for residents across the region. We look forward to seeing the conclusions of the DOJ’s investigation, and hope it leads to robust action to secure overdue justice for working families in Pennsylvania.”

In January 2023, Economic Liberties released “Critical Condition: How UPMC’s Monopoly Power Harms Workers and Patients,” with Congresswoman Summer Lee and then-Pennsylvania State Rep. Sara Innamorato, who are co-conveners of the Pittsburgh Hospital Workers Taskforce. The taskforce held a hearing in September 2022 at which dozens of Pittsburgh hospital workers testified about the severity of the workforce crisis in the region. Reporting from the Capitol Forum indicates that the Department of Justice launched an investigation into UPMC’s abuse of monopoly power in May 2023.

Policy recommendations from the white paper include directly reining in UPMC’s anti-competitive behavior and pricing power, along with ensuring state and federal enforcers can adequately address labor market consolidation, that workers have a voice on the job and the freedom to seek better employment options, and that UPMC lives up to its legal obligations as a non-profit.

Read “Critical Condition: How UPMC’s Monopoly Power Harms Workers and Patients,” here.

Learn more about Vanderbilt Policy Accelerator here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.