The Federal Trade Commission policy director cheered on the state of Maine's decision to repeal its Hospital and Health Care Provider Cooperation Act.
The act reportedly allowed certain agreements between hospitals and healthcare providers that could potentially be in violation of antitrust laws by issuing a Certificate of Public Advantage, according to a June 23 news release.
“We are heartened to learn that Maine has repealed its Certificate of Public Advantage law, and that the FTC’s COPA policy paper was influential in this outcome," FTC Office of Policy Planning Director Elizabeth Wilkins said in the release.
The FTC has been studying the effects of these agreements and found they often fail to achieve their intended goals of improving healthcare quality and cost containment, the release reported. Maine's Department of Health and Human Services also backed the repeal, citing concerns about the ineffectiveness and potential negative effects of these agreements.
"FTC staff has spent significant time and effort studying the effects of COPAs in healthcare markets," Wilkins added, according to the release. "We have found that COPAs can be difficult for states to implement and monitor over time, and are often unsuccessful in mitigating merger-related price and quality harms."
The FTC recommends states minimize the harms resulting from provider consolidation and avoid the use of such agreements that shield healthcare providers from antitrust liability, the release said. The FTC is open to collaboration with states and stakeholders considering the enactment or repeal of similar laws.
The Maine Department of Health and Human Services provided testimony supporting the repeal, referencing the FTC's policy perspectives and studies that highlighted the negative impact of previously approved agreements in Maine, the release reported. The department believes repealing this provision is necessary due to low utilization and growing concerns about the ineffectiveness of the agreements.
The FTC is responsible for developing policy initiatives related to competition, consumers and the U.S. economy, according to the release. They encourage the public to stay updated on FTC news and resources through their social media channels and website.
