Exclusive-FTC probes health records giant Epic Systems, sources say

By Jody Godoy

Aug 14 (Reuters) - Epic ‌Systems, a ​healthcare database ​company that holds the medical records of hundreds of millions of Americans, is facing an antitrust investigation by the U.S. Federal ‌Trade Commission, two sources familiar with the matter told Reuters.

Epic ⁠runs the patient web portal MyChart along with other electronic health record systems. Its products are ‌used by healthcare providers that ‌collectively treat more than 280 million people in the U.S., according to the company's website.

The FTC has sent investigative demands to others in the ​health technology industry seeking information about how Verona, Wisconsin-based Epic grants or withholds data access, the sources said.

"We're leaders in interoperability to support patient care, ⁠and we do not engage in anticompetitive behavior," an Epic spokesperson said when asked for comment on ​the probe.

A spokesperson for the FTC declined to comment.

The privately held company runs platforms used by hospitals and clinics across ​the U.S. to keep patient medical records. It ‌also runs a research platform where health systems that have opted in can conduct research using data from 310 ⁠million patients, according to Epic's website.

Texas Attorney General Ken Paxton sued Epic in December, accusing the company of shutting out would-be rivals by holding data hostage. The company keeps ⁠healthcare systems from using competitors through restrictions and fees, the state alleges.

Epic has denied ​the claims, saying that its products are interoperable with outside systems, and that its healthcare provider customers, not Epic, control access to patient records.

Particle Health, which competes with Epic in ‌the market for platforms insurers use to review and store medical records at a large scale, has previously sued ‌Epic, accusing it of setting up barriers for potential new Particle clients.

Epic has called ⁠the lawsuit baseless and said ‌Particle obtained confidential patient ​medical records under false pretenses, an allegation Particle has denied.

(Reporting by Jody Godoy in New York; Editing by Franklin Paul and ‌David Gaffen)

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