A bill is currently under consideration in North Carolina that aims to provide protection to the University of North Carolina Health Care System against potential antitrust challenges.
The Federal Trade Commission staff raised objections to the bill which, if passed, would enable actions that could hinder competition among healthcare providers, resulting in adverse effects such as increased costs, lower quality and restricted access to care, according to a June 5 news release. The FTC staff argues the bill is unnecessary since existing antitrust laws already permit collaborations that benefit patients.
"FTC comes and lays out the facts re: UNC's hospital monopoly bill. Yes, consolidation is BAD for consumers and patients," Graeme Strickland said in a recent post on Twitter. Strickland is in the North Carolina General Assembly working for Rep. Gloristine Brown.
The FTC expressed concerns about similar legislation in other states, emphasizing the importance of maintaining antitrust enforcement in hospital consolidation, the release reported. The staff comment from the FTC was submitted to the North Carolina House with a unanimous 3-0 vote by the Commission.
Senate Bill 743 aims to recodify and enhance existing provisions pertaining to the University of North Carolina (UNC) Health Care System. The bill encompasses various changes, granting the board of directors increased authority and authorizing the system to procure insurance or opt for self-insurance to mitigate medical malpractice claims and protect UNC from antitrust suits.
"When the board enters into cooperative agreements with any other entity for the provision of health care, its activities constitute state action for the purposes of antitrust law, making it immune to suit for antitrust violations," the bill reads. "There are currently no statutory provisions addressing this issue."
Furthermore, the legislation would render employees hired after July 1 ineligible to participate in the Teachers' and State Employees' Retirement System, according to the bill. Additionally, Senate Bill 743 seeks to implement conforming adjustments throughout the general statutes to ensure consistency.
Alan Wolf, spokesperson for UNC Health, emphasized the need for updating the state law that established UNC Health in 1998. He highlighted the statute has not been revised in 25 years, despite significant transformations in the healthcare industry, according to a May 2 North Carolina Health News report.
Wolf said modernizing the statute is crucial for UNC Health to effectively fulfill its mission of enhancing the health and well-being of all North Carolina residents. The proposed updates would provide UNC Health with the necessary flexibility to adapt to the rapidly evolving healthcare landscape of today, North Carolina Health News reported.
