HEALTHCARE MARKETS
The Source Roundup: May 2022 Edition
Erin Livinghouse, Student Fellow and Amy Y. Gu, Managing Editor May 2, 2022
This month in The Source Roundup, we cover articles and reports that examine: 1) the effect of private equity acquisition of hospitals; 2) the latest trends on hospital prices; and 3) ACA marketplace premiums at the state level in the last 3 years. Additionally, we highlight several cost containment strategies studied in recent reports, including 4) a progressive taxing proposal co-authored by The Source team, 5) establishing a state cost commission in California with lessons from other states, and 6) purchaser-led efforts to reduce healthcare costs. Consolidation and Competition …
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FTC Successfully Blocks Hackensack Meridian Merger with Big Win in 3rd Circuit Appeal
Amy Y. Gu, Managing Editor April 15, 2022
In the latest healthcare antitrust action, Hackensack Meridian and Englewood Healthcare officially terminated their merger plans after the Third Circuit Court of Appeals handed down a big win for federal regulators in the merger challenge. Last month, after multiple amicus briefs filed by various stakeholders in the appeals court, a three-judge panel affirmed the lower court’s preliminary injunction to block the merger, holding that the Federal Trade Commission (FTC) established a prima facie case showing that the proposed merger is likely to substantially lessen competition and that the hospitals’ procompetitive …
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California’s 2022-23 Budget Proposal Builds Upon Enduring Goals of Healthcare Access and Affordability
Enne Mae Guerrero, Graduate Research Fellow April 14, 2022
In January, Governor Gavin Newsom unveiled California’s 2022-23 state budget proposal—dubbed the California Blueprint—which proposes spending $286.4 billion in total state funds.[1] As the California Blueprint acknowledges, “[t]oo many Californians find themselves on the wrong end of income inequality – crushed by the rising costs of the most basic expenses like healthcare.”[2] With proposed investments to tackle health care issues facing the state, the Governor’s 2022-23 budget proposal addresses healthcare inequality, access, and affordability in a number of ways—such as in establishing an Office of Health Care Affordability; creating universal …
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The Source Roundup: April 2022 Edition
Hannah Park, Student Fellow April 1, 2022
This month, we are pleased to highlight new publications co-authored by The Source-affiliated health policy researchers and scholars, discussing 1) the potential benefits of all-payer hospital global budgets, and 2) the legal viability and policy effects of state public option health plans. Additionally, we examine articles covering research on 3) hospital service offerings based on ownership type, 4) the correlation between hospital prices and patient outcomes, 5) data sources within California’s physician practice landscape, and 6) the labor market impact of hospital mergers. Healthcare Reform and Cost Containment High …
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California Pushes Ahead the Office of Health Care Affordability with Renewed Budgetary Support
Enne Mae Guerrero, Graduate Research Fellow March 15, 2022
Healthcare costs have grown exponentially in California[1], and Californians have indicated that it is a core issue they want the Governor and Legislature to address and remedy. In a 2021 poll, Californians expressed almost unanimous demand for action, as 82% of Californians said it is “extremely” or “very” important for the Governor and Legislature to make health care more affordable.[2] While rising healthcare costs seem to be a national problem, Californians pay more for common health services than the rest of the country, with an additional cost disparity between northern …
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BREAKING: Sutter Wins After Federal Jury Trial in Sidibe Class Action
Amy Y. Gu, Managing Editor March 11, 2022
See case page: Sidibe v. Sutter Health After nearly ten years of litigation and a month-long trial in Sidibe v. Sutter Health in the federal district court in San Francisco, a nine-person jury delivered a unanimous verdict finding that Sutter Health did not engage in anticompetitive conduct and did not cause consumers to pay higher prices or premiums as alleged by the class plaintiffs. The jury answered no on two key questions to plaintiffs’ case, that 1) Sutter Health did not use tying practices in its insurer contracts; and 2) …
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[Sutter Case Watch] Jury Trial in Federal Class Action Against Sutter Health Provides Sneak Peek at Alleged Anticompetitive Contracting Practices
Amy Y. Gu, Managing Editor March 4, 2022
See case page: Sidibe v. Sutter Health Northern California hospital giant Sutter Health is again in the spotlight this month as the jury trial began in Sidibe v. Sutter Health in the District Court for the Northern District of California after nearly ten years of litigation. Many may recall the recent antitrust lawsuit led by California attorney general against Sutter Health, UFCW & Employers Benefit Trust (UEBT) v. Sutter Health, which settled in state court on the eve of trial in October 2019. While the settlement sent shockwaves across the …
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The Source Roundup: March 2022 Edition
Hannah Park, Student Fellow March 1, 2022
This month’s Roundup includes articles on healthcare merger review, specifically new policy recommendations that explain 1) why regressing price on the HHI does not inform merger analysis, and 2) how courts can implement health equity concerns in merger review. Next, we examine articles that evaluate potential strategies to reduce healthcare costs, including 3) state initiatives that build on past improvement efforts, and 4) financial incentives to reward patients for choosing lower-priced providers. Finally, we look at 5) trends in outpatient telehealth use since the start of the pandemic, and 6) …
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BREAKING: DOJ Files Lawsuit to Block United-Change Healthcare Merger
Amy Y. Gu, Managing Editor February 24, 2022
After months of speculation and opposition from industry groups, the Department of Justice (DOJ), along with attorneys general of New York and Minnesota, filed a lawsuit in federal court in the District of Columbia to block the merger of UnitedHealth and Change Healthcare, just days ahead of the February 27 deadline set for the deal to close. According to the DOJ announcement released on February 24, the lawsuit alleges the proposed $13 billion deal would not only harm competition in commercial health insurance markets, but also the market for technology …
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Lifespan-Care New England Merger Hits Roadblock as Rhode Island AG Joins FTC Challenge
Amy Y. Gu, Managing Editor February 23, 2022
Updated February 23, 2022: The entities withdrew their application and abandoned the proposed merger in the face of federal and state antitrust challenge. A temporary restraining order was granted on February 18 halting merger proceedings pending court ruling on the request for preliminary injunction. Rhode Island’s two largest nonprofit hospital systems, Lifespan and Care New England, will face a challenging road ahead to their proposed merger. On February 17, the Federal Trade Commission (FTC) voted to file a lawsuit to block the proposed merger in court. Separately, Rhode Island Attorney …
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