Shook Of Counsel Steve Vieux has authored an article for the American Health Law Association detailing two challenges brought by the Federal Trade Commission (FTC) against hospital mergers. The article explains each challenge in depth, focusing first on Methodist Le Bonheur Healthcare's purchase of two Memphis-area hospitals, then turning to the FTC challenge to Hackensack Meridian Health Inc.'s purchase of Englewood Healthcare Foundation.
"The FTC employs an economic model based on bargaining theory—will the combination provide the providers more bargaining leverage to negotiate higher reimbursement rates relative to before the acquisition?" Vieux notes. "In addition to increasing costs for insurers, the FTC is concerned that insurers can then pass on the costs to their subscribers (patients) through higher premiums, deductibles, and co-pays."