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Prevent hospital merger loopholes that drive prices up.
AKA “Revision of Premerger Notification Thresholds and Exemptions for Healthcare Entity Transactions”
Which agency/agencies promulgated the regulation? *
Federal Trade Commission (FTC)
16 CFR Parts 801–803 (Premerger Notification Rules under the Hart-Scott-Rodino Act), including exemptions and thresholds related to nonprofit healthcare consolidations.
—OPTIONAL--
Notice of Proposed Rulemaking
FTC “Size of Transaction” thresholds and nonprofit exemption policies under the Hart-Scott-Rodino Antitrust Improvements Act
Current FTC merger notification thresholds allow many hospital and healthcare system mergers to proceed without antitrust review. Rescinding or revising these thresholds will ensure that all significant consolidations are subject to appropriate oversight.
Assistant Director
Premerger Notification Office
Bureau of Competition
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580
(202) 326-3100
Under current Hart-Scott-Rodino (HSR) rules, only mergers that meet certain financial thresholds are subject to mandatory premerger notification. Many mid-size and nonprofit healthcare system consolidations fall below these limits and are therefore completed without FTC review. These transactions have contributed to the rise of regional monopolies, limiting patient access, reducing competition, and driving up costs.
• Rescinding current HSR thresholds for healthcare mergers would close a major regulatory loophole.
• Nonprofit status should not exempt entities from antitrust scrutiny, particularly when patient choice and pricing are affected.
• A revised review standard ensures competitive impact is assessed for all meaningful consolidations, not just those that meet arbitrary monetary thresholds.
Revise 16 CFR Parts 801–803 to require premerger notification and antitrust review for all transactions involving the transfer of ownership or control of healthcare assets exceeding $5 million, including those involving nonprofit entities. Remove exemptions based on tax status, transaction structure, or valuation method.
Andrew Ferguson
Chair, Federal Trade Commission