The Federal Trade Commission has warned 24 of the nation’s largest health systems that incomplete, inaccurate or untimely price disclosures could violate federal consumer protection law, even if the organizations comply with CMS’ hospital price transparency requirements.
FTC Chair Andrew Ferguson on Oct. 5 sent letters to the organizations urging them to review their pricing practices and take corrective action where needed, particularly for routine, nonemergency services scheduled in advance.
The letters mark another layer of federal scrutiny for hospitals’ pricing practices. The FTC said CMS’ price transparency rules establish a baseline for disclosures but do not provide hospitals with a “safe harbor” from liability under Section 5 of the FTC Act, which prohibits unfair or deceptive business practices.
The agency said healthcare prices are a material term under the law, meaning clear and conspicuous disclosures may be necessary to avoid misleading patients. A price disclosure could still be considered deceptive if it leaves out physician fees, facility fees or other costs that could lead patients to believe they have been given the total price of their care. Inaccurate price information could also be considered misleading.
The FTC also said pricing practices could be considered unfair when patients are not given complete and accurate information far enough in advance to compare providers and make informed decisions. The agency argued that withholding such information can also undermine competition by making it more difficult for consumers to compare healthcare providers.
“The FTC will continue to monitor the healthcare marketplace and take enforcement action as warranted,” the letter said.
The action comes as the FTC increases its focus on healthcare enforcement. Mr. Ferguson established a healthcare task force in March to coordinate enforcement and advocacy related to patients, healthcare workers and taxpayers.
An FTC spokesperson told Becker’s the agency is not disclosing the names of the 24 health systems that received the letters.
