Understanding Mergers Between Hospitals and Health Systems in Different Markets

Cross-market mergers between health care providers operating in different geographic markets can lead to increased prices and reduced access to care, despite potential benefits of efficiency and quality improvement, according to evidence and experts. Government antitrust agencies have started to scrutinize these mergers, but there is a lack of detailed guidelines and funding for litigation, allowing cross-market mergers to persist. Policymakers and regulators have proposed options such as increased scrutiny, prior approval requirements, and prohibiting certain contract clauses to address these concerns.

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Relevant topic timeline:

8/30/2023

Medicare should negotiate with drugmakers. But not set prices

The newly implemented rules in America that allow Medicare to negotiate drug prices could have damaging effects on innovation in the pharmaceutical industry and may discourage investment in new medicines, leading to fewer treatments in the future. Instead of focusing solely on price controls for drugs, regulators should address the issues within the rest of the supply chain, such as opaque middlemen and hospital mergers, to effectively lower healthcare costs.

9/21/2023

FTC Sues Private Equity-Owned Anesthesia Company for Illegal Monopolization, Causing Major Price Hikes for Patients

The Federal Trade Commission (FTC) has filed a lawsuit against U.S. Anesthesia Partners Inc. and its private-equity backer, Welsh, Carson, Anderson & Stowe, alleging that they engaged in anticompetitive practices to monopolize the anesthesia market in Texas and drive up prices for patients. This case highlights the FTC's scrutiny of smaller buyouts by private-equity firms and their potential to create monopoly power.

9/22/2023

FTC Sues Anesthesia Group and Private Equity Firm for Anticompetitive Consolidation Driving Up Healthcare Prices

The Federal Trade Commission has filed an antitrust lawsuit against a doctors' group and a private equity firm, accusing them of consolidating doctors' groups in Texas to raise prices for anesthesia services and harm fair competition.