Mr. Roy points to the 1993 merger of Massachusetts General and Brigham and Women’s in Boston, which created Partners HealthCare, arguing the hospital “monolith” essentially demanded whatever level of pricing it wants because plans had to include the Harvard-affiliated hospitals to be attractive to employers and individuals. In 2010, the Department Justice began investigating possible anticompetitive behavior by Partners.
He also draws attention to the merger of ProMedica Health System in Toledo, Ohio, and St. Luke’s Hospital in nearby Maumee, Ohio. According to the Federal Trade Commission, shortly after the merger ProMedica sought higher reimbursement rates from insurers. The FTC is currently challenging the merger on the basis that the merger would unfairly reduce competition and lead to increased costs to consumers.
Mr. Roy closes his column by promoting a great degree of scrutiny for anticompetitive hospital mergers.
Read More Articles on Hospital Consolidation:
FTC Investigates Fine Line Between Hospital Consolidation and Anti-Competition
Hearing Scheduled for FTC’s Injunction Request of St. Luke’s, ProMedica Merger
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