Epic has denied allegations from Texas Attorney General Ken Paxton that it monopolizes the electronic health record market and unlawfully restricts parental access to minors’ medical records, arguing in a court filing that the state’s claims are legally and factually flawed.
In a Jan. 20 filing in Tarrant County District Court, the Verona, Wis.-based EHR vendor denied all allegations and said it plans to seek dismissal of the lawsuit through a forthcoming Rule 91a motion. Epic contends the state failed to identify any anticompetitive conduct or any instance in which an Epic customer violated Texas law regarding parental access to health records.
Mr. Paxton filed the lawsuit Dec. 10, accusing Epic of using exclusionary tactics to maintain dominance in the EHR market and engaging in deceptive practices that restrict parental access to children’s medical information. The complaint alleges Epic’s software manages more than 325 million patient records, covering about 90% of U.S. residents, and claims the company’s conduct raises costs for hospitals and patients while limiting competition.
Epic disputes those claims, asserting that healthcare organizations, not the company, control access to patient records and configure parental proxy settings within Epic’s MyChart patient portal. The company licenses its software under a federated model, which gives each customer its own instance of the system and autonomy over how records are accessed, consistent with federal and state laws.
Mr. Paxton’s lawsuit also alleges Epic restricts parental access when a child turns 12, in violation of Texas Health and Safety Code §183.006. Epic counters that customers, not Epic, configure such settings, and that the state failed to identify a single customer out of compliance with the statute, despite conducting a six-month civil investigation before filing suit.
Epic said it provided Texas customers with guidance ahead of the law’s effective date but does not, and cannot, unilaterally change how individual health systems configure access. The company said hospitals and physicians decide parental access settings based on their interpretation of state and federal law, not Epic.
The filing also challenges the state’s antitrust allegations, including claims related to interoperability, application programming interface pricing, product roadmaps and employee noncompete agreements. Epic argues the state mischaracterized its business practices and disregarded evidence from the investigation showing that Epic facilitates large-scale data exchange with non-Epic systems.
According to the filing, Epic customers exchange more than 725 million medical records per month, with more than half exchanged with non-Epic systems. Epic said it offers more than 500 public APIs at no cost and licenses proprietary APIs through a vendor program with over 1,300 companies. The company also stated that over 99% of API transactions in 2025 were charged at the three lowest price tiers, one of which is free, and that it did not charge any transactions at the highest tier.
Mr. Paxton said in a Dec. 11 news release announcing the lawsuit that his office would not allow “woke corporations” to undermine parental rights and that the case aims to ensure Texans have access to their children’s medical records and benefit from a more competitive EHR marketplace.
Epic disputes the claims and argues the state misunderstands both its business model and its role in healthcare. The company maintains it does not store or control patient records and that its software is designed to support interoperability and customer compliance with applicable laws.
The case is part of a broader effort by the attorney general’s office to examine EHR vendors’ compliance with Texas laws governing parental access to minors’ health records. Epic argues that the statute cited does not apply to the company and that the lawsuit does not advance the interests of patients or providers.
Epic’s statements are based on its Jan. 20 court filing in Tarrant County District Court, which Becker’s reviewed.
