NY State Sues CVS

CVS is being sued by the state of New York.

The healthcare company is accused of diverting millions of dollars from under served communities.

New York Attorney General Letitia James says CVS Health violated antitrust laws by requiring safety net hospitals and clinics to exclusively use CVS-owned company Wellpartner to purchase drugs at a discount under a federal program, and use the savings for patient care.

“While safety net health care providers are tackling public health crises and helping under served communities, CVS is robbing them out of millions of desperately needed funds that could improve patient care,” said Attorney General James. “CVS’s actions are a clear example of a large corporation using its clout and power to take advantage of institutions and vulnerable New Yorkers, but my office will not allow it. We are taking action to stop CVS’s harmful practices and recoup critical funds to improve health care for our communities. When powerful corporations undermine the health and well being of vulnerable communities in New York, they can expect to hear from my office.”

The N-Y-A-G says the scheme caused many such healthcare providers to lose out on funding that was rightfully theirs.

Those that used Wellpartner had to pay millions to train their staff and change their data systems.

There has been no comment from the company yet.

(Photo by Bruce Bennett/Getty Images)

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