AHA this week shared with Senate Judiciary Committee Chairman Chuck Grassley, R-Iowa, and the Federal Trade Commission additional perspective on a recent Wall Street Journal article suggesting hospitals were at the root of contract terms that could disadvantage consumers. Grassley recently asked the FTC to assess certain contracting provisions between insurers and hospital systems for anticompetitive behavior, citing the article.
“Your recent inquiry to the Federal Trade Commission provides us the opportunity to share with you and the FTC some of our views on why that article misconstrued the dynamics between hospitals and commercial health insurers as it pertains to contract negotiations,” AHA wrote. “The overwhelming majority of hospitals and health systems are not the drivers in contract negotiations with commercial health insurers. In addition, the contract provisions hospitals and health systems are able to secure in negotiations typically have procompetitive and pro-consumer purposes, such as enabling the hospital or health system to successfully offer value-based care alternatives or protecting the hospital and its patients from unwarranted denials. Moreover, the article’s suggestion that the rise in the cost of health care is attributable to these contract negotiations is not borne out by the fact that hospital prices are currently at historically low growth rates and spending for hospital services overall is declining as a percentage of national health expenditures.”

Related News Articles

The AHA and American Association for Physician Leadership today released Leadership Evolve, a collection of digital resources on dyad leadership and workforce…
Insights and Analysis
Learn how an Oregon association collaborated with community stakeholders to produce an evidence-based toolkit to prevent workplace violence.
Chairperson's File
There is no doubt that enhanced convenience and customer service is where health care is headed.
The Department of Health and Human Services’ Office of the National Coordinator for Health Information Technology today released an updated Trusted Exchange…
The AHA today voiced support for the Recovering Excessive Funds for Unused and Needless Drugs Act (S. 551), legislation that would incentivize manufacturers to…
The Federal Trade Commission will hold a public workshop June 18 in Washington, D.C., to assess the impact of certificates of public advantage on health care…