Epic hit with lawsuit alleging anticompetitive practices

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CureIS Healthcare, a software provider focused on managed care, has filed a lawsuit against health IT giant Epic Systems, accusing it of unfair competition and illegal interference.

Here are five things to know:

  1. The company claims Epic systematically blocked access to data necessary for CureIS’ software to function. The complaint cites several instances in which Epic allegedly pressured mutual clients to abandon CureIS products—particularly EnrollmentCURE and EncounterCURE—and instead adopt Epic’s solutions.

  2. The lawsuit accuses Epic of telling clients that its own tools matched or exceeded CureIS’ capabilities. CureIS claims Epic also promoted future products that had not yet been developed to discourage partnerships with CureIS.

  3. CureIS alleges Epic obtained proprietary product specifications through mutual clients under false pretenses. The suit claims Epic used this confidential information to fast-track development of rival products, in violation of nondisclosure agreements.

  4. The complaint describes what CureIS calls an “Epic-first” policy, in which Epic allegedly mandates that clients using its electronic health record or billing systems must also use Epic products in related software categories, even if third-party alternatives are superior or already in use.

  5. Filed May 13 in the U.S. District Court for the Northern District of California, the lawsuit seeks damages and injunctive relief. CureIS is bringing claims under the Defend Trade Secrets Act, Lanham Act, California’s unfair competition and false advertising laws, and for tortious interference with contractual and economic relationships.

“Epic believes in free and fair competition, and we also believe our customers are in the best position to choose the right solutions to meet their needs—whether with Epic or by adopting other products and services,” a spokesperson for Epic told Becker’s in an emailed statement. “We are aware of the complaint filed by CureIS and we look forward to setting the record straight in court.”

In September, data startup Particle Health filed an antitrust lawsuit against Epic alleging that the company used its dominance in the EHR space to stifle competition in other markets that use that data. Epic has also denied these claims. 

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