The American Hospital Association has urged the Federal Trade Commission and Justice Department to exempt hospital mergers from proposed changes to premerger notification requirements under the Hart-Scott-Rodino Antitrust Improvements Act.
In a May 26 letter to the federal regulators, the AHA said hospitals should be excluded from any revisions to the HSR premerger notification form because the changes would “impose burdens that outweigh any expected benefits.”
The association argued that mergers can help hospitals and health systems navigate mounting financial pressures, including inflation, labor shortages, rising supply and drug costs, government underpayments and policy changes that could further strain margins.
The AHA cited recent industry data showing hospital expenses are continuing to outpace revenue growth. According to Strata’s Monthly Healthcare Industry Financial Benchmarks report, total expenses increased 5.4% year over year in January while gross operating revenue rose 3.9%. Kaufman Hall data also show that total hospital expenses rose 5% between January 2025 and January 2026, driven by labor, supply and drug costs.
“Given these headwinds, mergers can be economic lifelines for struggling hospitals across America,” Chad Golder, the AHA’s general counsel and secretary, wrote in the letter. “Often, these transactions are the difference between a hospital closing its doors and continuing to provide care to communities. Respectfully, the agencies should be especially wary of chilling these transactions with needless and costly administrative requirements.”
The comments come months after a federal judge vacated an FTC rule that expanded HSR filing requirements.
In February, the U.S. District Court for the Eastern District of Texas struck down the FTC’s 2024 final rule that would have required companies pursuing mergers and acquisitions to disclose additional information about business lines, competitive overlaps and investors.
The AHA had opposed those changes and filed an amicus brief in the case in August 2025, arguing the revised HSR form was “unnecessary and unlawful.”
In its latest comments, the AHA said there is “no indication that hospital mergers have historically evaded FTC review.”
The association noted the FTC has challenged numerous hospital transactions over the last three decades and argued existing review processes already provide regulators with enough information to scrutinize healthcare deals.
The AHA also argued the proposed reporting requirements are not tailored to hospital transactions and would increase administrative costs without improving antitrust enforcement.
“Imposing heightened reporting requirements on hospital mergers would add substantial burdens while providing no meaningful benefit,” Mr. Golder wrote. “We respectfully ask the Agencies to ‘cut’ out hospitals and health systems altogether from any updated HSR form.”
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