California is one of the leading states in healthcare antitrust enforcement. Following the footsteps of former California Attorney General Xavier Becerra, who led the antitrust lawsuit against northern California hospital giant Sutter Health, the new attorney general Rob Bonta continues to exercise the AG’s expansive authority with aggressive enforcement actions in the California provider market. Earlier in the summer, the AG’s office settled a lawsuit filed by Cedars-Sinai Health System and Huntington Memorial Hospital, with revised competitive impact conditions on the cross-market affiliation in Southern California to address potential harms …

Increasingly, hospitals have merged to form dominant health systems that can exert market power and charge anticompetitive prices that increase health care prices and burden the economy. A recent series of Milbank Memorial Fund issue briefs by researchers from the Source for Healthcare Price on Competition identified specific state policies and practices that can deter health care provider concentration, including improved merger review, oversight of anticompetitive conduct, and bans on potentially anticompetitive contract terms that apply to health insurers and providers. On October 21 at 3 p.m., ET, the Milbank …

This month, we are pleased to highlight two recent publications co-authored by health policy researchers from The Source. We specifically examine articles and reports discussing market consolidation including 1) viable practices state policymakers can implement to address provider market power, 2) a critical look at legislation targeting concentrated markets, 3) statistical reports analyzing health insurance market consolidation, and 4) a study on the quality of care in post-merger rural hospitals. In addition, we cover articles that examine public option health plans recently enacted in some states, proposals to improve compliance …

Hackensack Meridian Health’s proposed acquisition of Englewood Healthcare Foundation is the latest case to watch amidst increased federal antitrust scrutiny of healthcare mergers. While the FTC’s preliminary injunction against the merger was approved by the New Jersey district court early last month, the entities continue to put up a fight pending the FTC administrative trial set for October. In this post, The Source provides a recap of the latest development in the case and a preview of what’s to come.   FTC Challenge to Block Merger Hackensack Meridian Health, formed …

This month, our round-up proudly features a new issue brief written by our Source colleagues that discuss what state regulators need to strengthen state antitrust laws and prevent further healthcare provider consolidation. Also highlighted in this month’s round-up are studies on the potential impact of the federal No Surprises Act on health care prices, state-level strategies to reduce health care spending, better methods to assess policy-relevant financial information of hospitals, a grassroots push towards the public option, and industry trends and implications in the pharmacy market.   Market Competition/Consolidation In …

See case page: UFCW & Employers Benefit Trust v. Sutter Health On August 27, nearly two years after the parties reached a proposed settlement agreement, Judge Anne-Christine Massullo of the San Francisco Superior gave the final approval to the settlement of the high profile antitrust case against Sutter Health. The final settlement was stalled several times along the way, first due to the coronavirus pandemic, then the court’s rejection of the compliance monitor, and most recently disputes over attorney fees, which was the subject of the preliminary approval hearing on July …

Healthcare entities have continued to actively pursue proposed mergers and affiliations during —and in part driven by— the coronavirus pandemic. Since the settlement of the Sutter Health antitrust lawsuit, the proposed affiliation of Cedars-Sinai Health System and Huntington Memorial Hospital in California has emerged as the leading case that has captured the attention of health policy experts as to its antitrust implications. The Source also weighed in on the case with an amicus brief filed with the Los Angeles County Superior Court. In this post, we further detail the background …

Breaking: A class action lawsuit has been filed in North Carolina state court against HCA Healthcare and Mission Health, alleging anticompetitive practices in violation of the North Carolina Constitution and antitrust and consumer protection laws. The lawsuit follows HCA’s 2019 acquisition of Mission Health in North Carolina, which was approved with conditions by the North Carolina AG, although none of which were competitive impact conditions. Plaintiffs, who are North Carolina patients, claim that Tennessee-based HCA used market power garnered from the cross-market merger to demand anticompetitive terms in contracts with …

In the most recent legislative session, Indiana enacted a new certificate of public advantage (COPA) law (SB 416) that allows mergers of certain hospitals to receive immunity from claims of state antitrust laws for the duration of the certificate. Specifically, hospitals eligible for the COPA must be located in a predominately rural county with a specific population cap and has no more than two hospitals in the statewide comprehensive trauma care system. Indiana joins 17 other states with existing COPA laws and 1 states with limited COPA laws, mostly enacted …

This blog post is copublished with Milbank Memorial Fund. On July 9, 2021, President Biden issued an Executive Order on Promoting Competition in the American Economy, announcing his intent to reinvigorate antitrust enforcement throughout US industries with a special focus on certain markets including health care. The executive order and accompanying fact sheet cites research showing that hospitals in consolidated markets charge far higher prices than hospitals with several competitors and that hospital consolidation has left many areas, especially rural communities, without good options for convenient and affordable health care …