Letters from an influential Republican member of the Federal Trade Commission to the White House and CMS suggest a struggle between the FTC and Department of Justice to compromise on antitrust issues surrounding accountable care organizations, according to the New York Times.
The letters, written by J. Thomas Rosch, and obtained by theTimes, call for "vigorous antitrust enforcement" of these organizations in order to ensure they don't become anticompetitive, according to the report.
While ACOs allow collaboration, which is expected to lead to efficiency and reduce overall healthcare costs, there is some risk of monopolistic practices in certain markets.
The FTC and DOJ, which share responsibility for enforcing antitrust laws, are currently working to release a joint statement that would serve as antitrust guidance to healthcare providers creating ACOs. Officials refused to release information about their efforts, but the DOJ's antitrust division "is widely seen by hospitals as more sympathetic to their efforts to band together with doctors and negotiate jointly with health insurance plans," according to the report.
Mr. Rosch's letters argued the FTC should lead investigations into ACO antitrust issues to "avoid…battles with the Justice Department." The letters state the DOJ contends healthcare providers should be able to chose which agency would review their plans. His letters argue this could lead to "a lack of regulatory consistency," according to the report.
Read the New York Times report on antitrust issues and accountable care organizations.
Read more coverage on accountable care organizations:
- 8 Points on How Antitrust Laws Might Affect ACOs
- 4 Points on Exclusivity, Market Power and Transparency in ACOs
The letters, written by J. Thomas Rosch, and obtained by theTimes, call for "vigorous antitrust enforcement" of these organizations in order to ensure they don't become anticompetitive, according to the report.
While ACOs allow collaboration, which is expected to lead to efficiency and reduce overall healthcare costs, there is some risk of monopolistic practices in certain markets.
The FTC and DOJ, which share responsibility for enforcing antitrust laws, are currently working to release a joint statement that would serve as antitrust guidance to healthcare providers creating ACOs. Officials refused to release information about their efforts, but the DOJ's antitrust division "is widely seen by hospitals as more sympathetic to their efforts to band together with doctors and negotiate jointly with health insurance plans," according to the report.
Mr. Rosch's letters argued the FTC should lead investigations into ACO antitrust issues to "avoid…battles with the Justice Department." The letters state the DOJ contends healthcare providers should be able to chose which agency would review their plans. His letters argue this could lead to "a lack of regulatory consistency," according to the report.
Read the New York Times report on antitrust issues and accountable care organizations.
Read more coverage on accountable care organizations:
- 8 Points on How Antitrust Laws Might Affect ACOs
- 4 Points on Exclusivity, Market Power and Transparency in ACOs