The American Medical Association (AMA) on Monday announced it was filing a class action complaint against several companies for failing to provide adequate medical care to patients in the United States, a ruling that could make it easier for patients to get a share of the profits from medical devices.
The class action suit was filed by patients and healthcare professionals in California and New York, and it accuses Apple, the makers of the Apple Watch, of “deceptive business practices” that harmed them in the form of high prices and long waits for treatment.
The plaintiffs argue that Apple and its partners created a situation in which doctors were incentivized to treat patients who were not likely to need the service, leading to a situation where more patients were being treated than needed.
“The medical devices industry has created an artificial demand for medical devices, resulting in the medical devices companies imposing unreasonable and excessive pricing, which resulted in overburdened health care facilities, medical errors, and increased costs to consumers,” said the AMA in a statement.
The complaint accuses Apple of: · Creating a situation that encourages doctors to prescribe devices to patients that do not require care and therefore increase patient wait times; · Creating an artificial supply and demand for devices by creating artificially high prices; · Promoting the use of the iPhone for medical care and by imposing unreasonable wait times, which have resulted in patients and medical professionals being denied the opportunity to receive timely care; and · Notifying patients of their rights to seek treatment if they are in the middle of medical procedures or require urgent medical care, which has resulted in the unnecessary and unnecessary harm that is caused to patients and health care providers.
The lawsuit is seeking monetary damages for all affected patients.
Apple declined to comment.
In an interview with CNNMoney, Apple CEO Tim Cook denied that the company created an artificially high demand for its devices.
“Our supply chain is not a problem.
We don’t want to get into any more hypotheticals,” Cook said.
“We’re in a supply chain.”
The suit was first reported by Bloomberg Businessweek.