Lawmakers Urged to Probe NY Hospital Powerhouse Amid Antitrust Suit

An advocacy group is asking Congress to investigate the tax-exempt status of one of the largest health care systems in New York City, pointing to massive executive pay hikes and a Justice Department antitrust lawsuit.

Save Our States Executive Director Trent England asked House Ways and Means Chairman Jason Smith, R-Mo., to probe the NewYork-Presbyterian Hospital system.

“All these facts suggest a pattern of NewYork-Presbyterian taking taxpayer dollars and other government benefits and focusing on maximizing revenue and executive perks rather than on serving their patients,” says England’s letter to the House committee, shared with The Daily Signal.

In March, the Justice Department filed an antitrust lawsuit against the hospital, citing “anticompetitive contract restrictions that deny New Yorkers the choice of lower cost healthcare options.”

Save Our States also launched a new digital ad campaign titled “Patient Betrayal,” critical of the hospital, its spending, and its tax-exempt status.

The nonprofit hospital system includes facilities at Columbia University Irving Medical Center and Weill Cornell Medical Center.

Save Our States noted that the NewYork-Presbyterian Hospital CEO’s compensation jumped from $8.9 million to more than $23 million in a two-year period. Shortly thereafter, it reduced its workforce by about 1,000 employees due to “anticipated financial challenges.”

“The American people deserve transparency and accountability in healthcare, especially from systems that benefit from taxpayer subsidies,” the letter continues.

The ad and the letter highlight a $750 million settlement that the hospital and Columbia University paid to hundreds of women who sued, alleging they were sexually abused by a doctor, as reported by The New York Times.

NewYork-Presbyterian did not respond to email and phone inquiries from The Daily Signal on Monday and Tuesday.

However, the hospital has previously said the Justice Department antitrust lawsuit was “without merit” and said it “complies fully with all applicable federal and state laws and regulations.”

“We do not seek to exclude any other hospital from any insurer’s network. Nor do we require more favorable treatment than any other hospital,” the hospital said in a statement to Fierce Healthcare.

“In our contract negotiations with insurers, we seek to maximize access to the highest quality of care,” the hospital continued. “Insurance companies hold the market power and use it to restrict patient choice. The obligation of insurance companies is to their shareholders, while ours is to our patients.”

The nonprofit hospital system lists more than 10,000 affiliated physicians and 50,000 employees, with more than 2 million visits annually.