A series of policy changes recently adopted by the Federal Trade Commission (FTC) could have vast unintended consequences for America’s struggling rural hospitals.
The shift in policy comes amidst a broader skepticism the FTC is beginning to adopt around mergers. The new policy would in effect give the commission veto power over a company’s future transactions once it attempts an allegedly anticompetitive merger or acquisition. And while no one would fault the FTC for wanting to put a stop to mergers that would raise prices or harm consumers, the fact is recent consolidations in the hospital industry has shown that neither have occurred in this space. In fact, it is quite the opposite. Preventing some of these mergers from occurring could not only limit patient access to healthcare, but it could also cause healthcare prices to continue to rise.
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