How a proposed hospital merger affects Maine’s health care industry
How a proposed hospital merger affects Maine’s health care industry.
US proposes to ban healthcare mergers
A group representing some of the largest U.S. employers has petitioned Congress for a year-long ban on mergers and acquisitions between hospitals that received government money to combat the fallout from the COVID-19 pandemic.
Pacific the healthcare business unit, of which Boeing, Salesforce, Tesla and Walmart are members, said in a letter addressed to congressional leaders about concerns that further consolidation in the healthcare industry could lead to higher prices for healthcare.
Physician practice revenues have plummeted in the U.S. since restrictions were imposed to stem the spread of coronavirus as patients stay at home except in emergencies.
Even before the pandemic, well-funded hospital systems included small hospitals to increase market share.
Group asked for an annual ban on mergers and acquisitions for any healthcare provider receiving any portion of the $ 170 billion in government aid approved for the industry.
«Anticompetitive practices increasingly target large employers. We are seeing the collapse of independent medical care right now», – said Elizabeth Mitchell, CEO of PBGH. Policymakers and regulators are already scrutinizing hospital mergers.
The FTC decided to block the merger of two Pennsylvania hospitals in February, on the grounds that the consolidation would mean reduced incentives to lower costs in the sector.