Antitrust chairman wants to change how FTC probes hospital deals, nonprofit status

The chairman of the House Judiciary antitrust subcommittee plans to start writing legislation aimed at giving the Federal Trade Commission more leeway to punish anticompetitive deals in healthcare, according to Bloomberg Law.

Five things to know:

1. Rep. David Cicilline, D-R.I., intends to begin working on regulation that would change how the FTC goes after antitrust violations. Specifically, Mr. Cicilline wants to allow the FTC to recoup money that companies gain through anticompetitive behavior. This process is known as disgorgement.

2. The chairman also is considering giving the FTC more authority to investigate any potential antitrust concerns among nonprofit hospitals. He may consider enforcement measures, according to Bloomberg Law.

3. Currently, the FTC can't probe anticompetitive concerns among nonprofit hospitals, but can investigate mergers.

4. Mr. Cicilline said he may work with Senate Finance Committee Chairman Chuck Grassley, R-Iowa, on the topic of nonprofit hospitals' tax-exempt status. In late February, Mr. Grassley sent a letter to the IRS asking the agency for information about nonprofit, tax-exempt hospitals and whether they are meeting statutory requirements under federal law.

5. Lawmakers and regulators are turning more focus to healthcare consolidation. In the past 15 years, hospital and health system deals grew from 38 transactions in 2003 to 115 in 2017, according to Kaufman Hall data cited by Bloomberg Law.

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