FTC Probes Epic Systems Antitrust Practices
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- Epic Systems is facing an FTC probe into potential antitrust violations, with investigators contacting at least four people in or advising healthcare businesses about the company's practices.
- Two lines of inquiry center on Epic's non-compete agreements that block employees from joining competitors and its alleged use of market dominance to deny rival tech firms access to patient data held in Epic's systems.
- State attorneys general in multiple states have also joined the inquiry, reaching out to interview subjects and their private lawyers, according to people who spoke with STAT.
- Epic's market footprint is massive — the Wisconsin company holds records for 57% of U.S. inpatient hospital beds and approximately 82% of Americans, generating $5.7 billion in revenue in 2024.
- Private lawsuits from CureIS Healthcare and Particle Health allege Epic blocked their data access and pressured shared customers to drop them; Epic calls the suits baseless and is fighting dismissal motions.
- Labor lawsuits from Veeva Systems (dismissed, now on appeal) and former employee Andrea Hull (pending in California) target Epic's unusually restrictive non-compete and stock purchase agreements.
- Executive exodus: Sumit Rana, long rumored as founder Judith Faulkner's heir apparent, and longtime AI leader Seth Hain both departed in July, joining several other longtime leaders who recently left.
Why it matters: Epic controls health records for roughly 82% of Americans and 57% of inpatient hospital beds, making it the gatekeeper for patient data that AI-driven healthcare startups depend on. If the FTC finds Epic has been blocking rivals' data access to protect its own products, the probe could force structural changes affecting hundreds of third-party healthcare tools and reshape competition in the fast-growing AI health sector.
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