Fitch: Supreme Court Ruling Siding With FTC Negative for Investor-Owned Hospitals

Taking the Supreme Court's recent Phoebe Putney ruling into consideration, Fitch Ratings released a statement yesterday that the Federal Trade Commission's bolstered ability to obstruct hospital mergers is negative for investor-owned hospitals.

Fitch specified that the ruling and FTC's "stricter antitrust action" is negative for investor-owned facilities since these companies have recently been offsetting "weak organic growth through hospital acquisitions," according to the report.

The FTC's heightened scrutiny in hospital mergers could also affect commercial payor rates to hospitals. "Simply put, less industry consolidation means decreased pricing power for hospitals," Fitch said.

Fitch doesn't expect a slow-down in for-profit operators' plans for hospital acquisitions, however, since acquisitions still remain as a priority. Rather, Fitch says the FTC's more stringent antitrust pressure could dampen the frequency of hospital transactions.

More Articles on Hospitals and the FTC:

Supreme Court Sides with FTC in Phoebe Putney Case
Oklahoma's Norman Regional Gets FTC OK for Non-Exclusive Network With 280 Physicians
Due to FTC Scrutiny, Reading Health Terminates Surgical Hospital Purchase


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