Recent policy changes by the Federal Trade Commission could hurt rural hospitals in the U.S., many of which are struggling financially, Ken Summers, former chair of the Health and Environment Committee in the Colorado House of Representatives, wrote Dec. 13 in RealClearMarkets.
The policy changes would allow the FTC to veto a company's future transactions if it tries an "allegedly" anticompetitive merger or acquisition.
Mr. Summers argued that the prevention of these mergers would both limit healthcare access and actually make healthcare prices continue to rise.
He added that outdated data going as far back as the 1990s is often used as an argument against mergers. But more recent data has found mergers led to a decrease in costs, such as a study from Charles River Associates. The JAMA network also found mergers led to a decrease in mortality rates at rural hospitals.
The reason for this is that smaller hospitals can benefit from the finances of larger hospital systems, he said.
"By eliminating administrative redundancies, operating costs are reduced or shifted towards patient care," he said. "The vast capital that larger hospital systems can provide, meanwhile, provide rural hospitals an opportunity to invest in upgrading facilities. This improves patient outcomes, and also helps these facilities realize yet more efficiencies which result in additional cost savings."