Administration eyeing negative impacts of corporate healthcare ownership
The White House has specifically called out the acceleration of consolidation in healthcare markets, saying it too often leads to higher costs.
December 11, 2023 – Jeff Lagasse, Associate Editor –
The White House has signaled its intent to address the potentially negative and problematic aspects of corporate ownership in healthcare, with a focus on drug pricing, transparency and anticompetitive behavior.
In a fact sheet released by the Biden Administration, the White House specifically called out the acceleration of consolidation in healthcare markets, saying it too often leads to higher costs, worse quality and reduced care access, especially in rural areas.
Citing a review of hospital merger studies, the administration said mergers in concentrated markets led to price increases often exceeding 20%. Consolidation has also led to a rapid decline in independent physician practices, with the research finding that patients of hospital-owned practices pay nearly $300 more for similar care than at independent physician practices.
At the same time, private-equity ownership in the healthcare industry has ballooned, with approximately $750 billion in deals between 2010 and 2020.
In response, the White House said it would launch a cross-government public inquiry into corporate greed in healthcare. The Department of Justice, the Federal Trade Commission and Department of Health and Human Services will issue a joint Request for Information to seek input about how private equity and other corporations’ increasing influence in healthcare is affecting Americans.
