Anticompetitive practices in the healthcare industry are a top priority at the FTC, DOJ and HHS

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FTC Chair Lina M. Khan | FTC website

Anticompetitive practices in the healthcare industry are a top priority at the FTC, DOJ and HHS

The Federal Trade Commission (FTC) has recently publicized its collaborative efforts with the Department of Justice (DOJ) and Department of Health and Human Services (HHS) to eradicate anticompetitive practices in the healthcare industry. The FTC asserts that these practices contribute to escalated healthcare costs, diminished innovation in both the healthcare and pharmaceutical sectors, and substandard working conditions.

According to an FTC press release, the three agencies have been jointly working towards reducing healthcare costs. A recent initiative involves a "Request for Information" aimed at understanding how private-equity and other corporations' control over healthcare impacts Americans. Furthermore, they are sharing data to pinpoint anticompetitive transactions and plan on appointing healthcare competition officers to spearhead their endeavors.

The FTC press release also reveals that, with backing from the Food and Drug Administration, the FTC issued an Orange Book policy statement in September. This was directed at pharmaceutical companies that improperly list patents in the FDA’s catalog of "Approved Drug Products with Therapeutic Equivalence Evaluations." As of November, more than 100 patents have been challenged by the FTC as improper listings. In January, a new rule was proposed by the agency that would prohibit employers from imposing noncompete clauses on their employees. The FTC's actions also include several legal proceedings such as a lawsuit filed to obstruct John Muir Health’s proposed $142.5 million acquisition of San Ramon Regional Medical Center.

In relation to DOJ activities outlined in the FTC press release, protection of competition includes legal challenges like United States v. Teva Pharmaceuticals, United States v. Harwin, and United States v. Lopez. A Memorandum of Understanding was signed with the HHS Office of the Inspector General aiming to safeguard healthcare markets through data sharing, enforcement activities, and training sessions. The DOJ has also submitted numerous statements of interest, amicus briefs, and federal agency comments intended to enhance the healthcare job market—addressing wages, working conditions, and opportunities for professional growth.

The FTC press release also details HHS’ efforts, which are primarily focused on improving transparency in ownership, hospital charges, and Medicare Advantage; reducing drug prices through negotiation; and clamping down on anticompetitive and anti-consumer practices in Medicare Advantage.

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