Federal Trade Commission Chairman Jon Leibowitz said challenging anticompetitive hospital mergers is one way his agency is controlling healthcare costs, but many hospitals say the government is sending mixed messages, according to a Wall Street Journal report.
Last year, a 10-year high of 86 hospital deals were announced — valued at roughly $7.94 billion. The FTC's renewed focus in the hospital industry began in 2002, when the agency studied past hospital mergers and found some transactions had led to higher prices. The FTC has seen even more recent studies suggesting hospitals in markets with few competitors can charge higher prices.
Hospitals are confused by the FTC's aggressive reviews, though. Many officials say the government is sending mixed messages. "It doesn't seem like the FTC understands where the field is going and the pressures it has to be more efficient," Melinda Hatton, general counsel for the American Hospital Association, said in the report.
Thomas Greaney, a law professor from St. Louis University, said the new studies showing the economic impact of hospital mergers may persuade courts that the growing hospital concentration is "malignant," according to the report.
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FTC's Stance Toward Hospital Mergers Grows More Aggressive
Last year, a 10-year high of 86 hospital deals were announced — valued at roughly $7.94 billion. The FTC's renewed focus in the hospital industry began in 2002, when the agency studied past hospital mergers and found some transactions had led to higher prices. The FTC has seen even more recent studies suggesting hospitals in markets with few competitors can charge higher prices.
Hospitals are confused by the FTC's aggressive reviews, though. Many officials say the government is sending mixed messages. "It doesn't seem like the FTC understands where the field is going and the pressures it has to be more efficient," Melinda Hatton, general counsel for the American Hospital Association, said in the report.
Thomas Greaney, a law professor from St. Louis University, said the new studies showing the economic impact of hospital mergers may persuade courts that the growing hospital concentration is "malignant," according to the report.
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FTC's Stance Toward Hospital Mergers Grows More Aggressive