Large employers push back on U.S. healthcare mergers during coronavirus crisis

Large employers push back on U.S. healthcare mergers during coronavirus crisis

imageCoronavirus13 hours ago (May 22, 2020 10:11PM ET)

4/4

(C) Reuters. FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in Everett

2/4

By Rebecca Spalding

(Reuters) – A group representing some of the largest U.S. employers has asked Congress for a year-long ban on mergers and acquisitions among hospitals and doctors groups that received government money to cope with the effects of the COVID-19 pandemic.

The Pacific Business Group on Health, whose members include Boeing (NYSE:BA), Salesforce (NYSE:CRM), Tesla (NASDAQ:TSLA), and Walmart (NYSE:WMT), said in a letter addressed to congressional leaders this week that it feared that further consolidation in the healthcare industry could lead to higher costs.

Physician practices’ revenues have plummeted across the United States since shutdowns were imposed to stop the spread of the coronavirus, as patients stay home except for emergencies.

Even before the pandemic, well-funded hospital systems were taking over smaller doctors groups and hospitals to increase market share.

PBGH said it fears these larger players will be even better positioned to buy struggling practices coming out of the crisis, raising healthcare prices for employers. The group asked for a year-long M&A ban for any healthcare provider receiving any of the $170 billion government relief approved for the industry.

“Anti-competitive practices are increasingly concerning to large employers. What we’re seeing happening right now is the collapse of independent primary care,” Elizabeth Mitchell, chief executive officer of PBGH, told Reuters.Politicians and regulators have already been scrutinizing mergers in the hospital industry.

The Federal Trade Commission moved to block a merger between two Pennsylvania hospitals in February, on the grounds that consolidation would mean the systems would have fewer incentives to keep costs down.

Large employers push back on U.S. healthcare mergers during coronavirus crisis

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

No Comments

Post A Comment