The Federal Trade Commission, the Department of Justice\u2019s (DOJ) Antitrust Division, and the U.S. Department of Health and Human Services (HHS) jointly launched a cross-government public inquiry into private-equity and other corporations\u2019 increasing control over health care.<\/p>\n
Private equity firms and other corporate owners are increasingly involved in health care system transactions, and, at times, those transactions may lead to a maximizing of profits at the expense of quality care. The cross-government inquiry seeks to understand how certain health care market transactions may increase consolidation and generate profits for firms while threatening patients\u2019 health, workers\u2019 safety, quality of care, and affordable health care for patients and taxpayers.<\/p>\n
The agencies issued a Request for Information (RFI)<\/a> <\/strong>requesting public comment on deals conducted by health systems, private payers, private equity funds, and other alternative asset managers that involve health care providers, facilities, or ancillary products or services. The RFI also requests information on transactions that would not be reported to the Justice Department or FTC for antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act.<\/p>\n \u201cWhen private equity firms buy out healthcare facilities only to slash staffing and cut quality, patients lose out,\u201d said FTC Chair Lina M. Khan. \u201cThrough this inquiry the FTC will continue scrutinizing private equity roll-ups, strip-and-flip tactics, and other financial plays that can enrich executives but leave the American public worse off.\u201d<\/p>\n \u201cPreserving competition in health care markets is a priority for the Department of Justice because of its important impact on the health and well-being of Americans,\u201d said Assistant Attorney General Jonathan Kanter of the Justice Department\u2019s Antitrust Division. \u201cThis RFI will enable the agencies to accurately understand the modern market realities of the health care industry and forcefully enforce the law against unlawful deals. Hearing from patients, workers, and market participants will be critical in developing future enforcement and policy efforts relating to consolidation in the health care sector.\u201d<\/p>\n \u201cIncreasing competition in health care markets gives people more choices.\u00a0Competition helps ensure patients have access to high-quality, lower cost care, and that\u00a0health care workers receive\u00a0higher pay and work under better conditions. And it saves taxpayers money,\u201d\u00a0said Health and Human Services Secretary Xavier Becerra. \u201cWe need to do more to understand the impact of private equity and corporate dealmaking on our policymaking, regulatory decisions and enforcement actions. The Biden-Harris Administration is committed to improving transparency and competition in health care.\u201d<\/p>\n Research has shown that competition in health care provider and payer markets promotes higher quality, lower cost health care, greater access to care, increased innovation, higher wages, and better benefits for health care workers. Comments submitted in response to the joint RFI will inform the agencies\u2019 enforcement priorities and future action, including potential regulations aimed at promoting and protecting competition in health care markets and ensuring appropriate access to quality, affordable health care items and services.<\/p>\n The agencies\u2019 RFI builds upon the Centers for Medicare & Medicaid Services\u2019\u00a0recent RFI<\/a> on Medicare Advantage and a\u00a0RFI issued<\/a> by the FTC and HHS on how pharmaceutical middleman groups may be contributing to drug shortages. The RFI issued today stems from a December 2023\u00a0announcement<\/a> outlining efforts by the DOJ, FTC and HHS to lower health care and drug costs, while promoting competition to benefit patients and health care workers.<\/p>\n In addition to the launch of the RFI, all three agencies will also be participating today in a\u00a0virtual public workshop<\/a> that will explore the impact of private equity in health care and will discuss what the federal government is doing to address any harmful effects.<\/p>\n All market participants\u2014including patients, consumer advocates, doctors, nurses, health care providers and administrators, employers, insurers, and more\u2014are invited to share their comments in response to the RFI. The agencies seek comments on a variety of transactions, including those involving dialysis clinics, nursing homes, hospice providers, primary care providers, hospitals, home health agencies, home- and community-based services providers, behavioral health providers, as well as billing and collections services.<\/p>\n