Health IT vendor Surescripts settles with the FTC, resolving an antitrust lawsuit without penalties. The agreement prohibits non-compete agreements with employees and mandates changes to business practices, including eliminating loyalty provisions in contracts. Surescripts maintains its commitment to innovation and improving patient safety. The proposed order restrains exclusionary conduct, prevents imposing majority share requirements on customers, and restricts actions hindering competition in the ePrescribing market. The FTC emphasizes its dedication to protecting healthcare consumers and promoting a competitive healthcare industry.
Surescripts, a prominent health IT vendor, has successfully settled an antitrust lawsuit with the Federal Trade Commission (FTC) without incurring any monetary penalties. The lawsuit, filed in April 2019, accused Surescripts of monopolizing the ePrescribing market and using its influence to pressure EHR vendor Allscripts to retain its business.
In response to the settlement, Surescripts CEO Frank Harvey expressed pride in the company’s role as a pioneer in electronic prescribing, which has delivered significant benefits to patients and healthcare providers alike. Harvey emphasized the company’s dedication to innovation, cost reduction, patient safety, and quality care through their services.
The settlement marks the end of the FTC’s litigation, formalizing changes in Surescripts’ business practices that began several years ago. Notably, the agreement mandates the elimination of loyalty provisions in contracts and prohibits Surescripts from engaging in exclusionary practices.
Surescripts contested the FTC’s case, claiming that it relied on factual errors and misconceptions about the ePrescribing market’s economic realities. Over the years, Surescripts has managed to reduce average ePrescribing transaction fees by an impressive 77% and enhance ePrescription accuracy by more than 200% since 2016.
Looking ahead, the health IT vendor aims to continue its mission of facilitating health intelligence sharing and bringing further innovation to the healthcare industry.
The proposed order in the settlement lays out specific restrictions for Surescripts, including:
1. Prohibiting the use of contracts imposing majority share requirements on routing and eligibility customers.
2. Banning implementation of problematic provisions used to hinder customers from doing business with Surescripts’ competitors.
3. Restricting measures that would prevent customers from promoting competitor services or communicating with them freely.
4. Preventing agreements that block rivals from competing in routing and eligibility services.
5. Forbidding discrimination or threats against customers who reject majority share requirements.
6. Disallowing non-compete agreements with current and former employees, preventing them from working for competing ePrescribing service providers.
The FTC’s Bureau of Competition director, Holly Vedova, stressed that the commission will remain vigilant in enforcing antitrust laws to protect healthcare consumers. Through this settlement, the FTC aims to foster fair competition and promote a more competitive and patient-centric healthcare ecosystem.
