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You are here News Congress CVS siphoned millions from 'safety net' hospitals - New York lawsuit

CVS siphoned millions from 'safety net' hospitals - New York lawsuit

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CVS sued by NYSNew York on Thursday sued CVS Health Corp (CVS.N) for allegedly forcing hospitals that serve low-income patients to pay millions of dollars to access discounted prescription drugs, violating state antitrust law.

In a lawsuit filed in state court in Manhattan, New York Attorney General Letitia James said CVS group abused its market power by requiring hospitals and clinics to use a CVS subsidiary, Wellpartner, to fill prescriptions for discounted drugs at CVS pharmacies.

"While safety net health care providers are tackling public health crises and helping underserved communities, CVS is robbing them out of millions of desperately needed funds that could improve patient care," James said in a statement.

"These allegations are without merit and we will defend ourselves vigorously," CVS said in a statement.

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