As the Federal Trade Commission and Department of Justice contemplate changes to their guidelines for horizontal and vertical mergers, AHA today urged the agencies to update the guidelines to properly recognize the benefits that mergers can provide to some hospitals and health systems and their patients and communities.

“Mergers enable hospitals to improve clinical care, lower costs, upgrade facilities, and offer new and higher quality services,” AHA wrote. “For these reasons, it is essential that the antitrust agencies employ analytically sound merger guidelines that fairly account for the lifesaving benefits that hospital mergers produce. Changes to the guidelines should reflect years of scholarship that have documented these pro-competitive efficiencies.

“The merger guidelines do not need major revisions. But they should be revised in two specific ways to improve how the agencies analyze hospital mergers. First, the guidelines should require the agencies to correct defects in the economic models that they use to evaluate hospital transactions. Second, the guidelines should enable the antitrust agencies to account for the improved coordination of care that mergers enable. These revisions are necessary to ensure that the antitrust agencies properly recognize the benefits of hospital mergers when reviewing proposed transactions.”

Related News Articles

Headline
The Federal Trade Commission sued to block two separate hospital mergers, it announced today. The FTC will sue to block the announced merger between HCA…
Headline
AHA today urged the Federal Trade Commission to scrutinize commercial health plans that steer patients to third-party specialty pharmacies in which they have a…
Headline
The AHA today urged the U.S. Supreme Court to reverse a 9th Circuit decision that impliedly stripped federal district courts of jurisdiction over…
Headline
The Department of Health and Human Services today released a report and public data on 2016-2022 ownership changes for hospitals and nursing homes enrolled in…
Headline
Following their recent request for information on ways to modernize merger guidelines, the Federal Trade Commission and Department of Justice today held a…
Headline
The Justice Department today joined Minnesota and New York in filing a federal lawsuit to stop UnitedHealth Group from acquiring Change Healthcare,…