The Department of Justice monitors potential anticompetitive transactions in the healthcare industry.
“No question in U.S. antitrust enforcement and competition policy is more important than what can be done to protect competition in the health care industry,” said Assistant Attorney General Andrew J. Forman. Said At a conference focused on competition in the healthcare sector held last week in Washington, DC. “Healthcare represents nearly 20% of our nation’s GDP, and unfortunately there are too many competing questions that require scrutiny and discussion.”
He told the Capitol Hill Forum on Healthcare Competition that provider and payer consolidation is an area of particular focus for the Antitrust Division as it relates to healthcare competition.
“We are looking at provider and payer consolidation. We are wondering whether much of this consolidation, the main justification for so-called value-based care, is delivering on its promise of lower prices and improved outcomes. I’m wondering,” Forman said.
As one of the integrated areas in long-term care, mac knights Previously reported, CVS Health to add home care technology company Signify Health and primary care provider Oak Street Health. CVS’ new Medical Services division will combine the company’s home care services, primary care, and retail medical clinics. The company’s reorganized business also includes a pharmacy and consumer wellness division and provider-facing capabilities.
Forman said, “The trend towards a more concentrated market structure with a few large healthcare companies with a solid stack of insurers, providers, PBMs, pharmacies, and/or other services under the same roof. ” was pointed out.
“We wonder how this trend has or will impact competition and power across the complex web of relationships in the healthcare ecosystem,” he said. “Is consolidation a good thing, as both companies claim? Maybe it is, if done right. Or has consolidation raised prices, reduced innovation, and deepened the moat protecting power sources? Do you want it?”
Going forward, Forman said healthcare companies should expect close scrutiny of potential transactions that could involve antitrust issues, adding, “We should not hesitate when the facts and law warrant.” We will act accordingly.”
He added that the Department of Justice “continues to be vigilant” in maintaining transparency in healthcare ownership.
Additionally, Mr. Forman addressed labor-related issues in the healthcare field, such as wage disputes, non-compete and non-poach agreements, and other workplace restrictions.
“Health care systems are the largest employers in many communities across America, especially in rural America. “We have to be careful about what we do,” he said.