The American Hospital Association and five other hospital associations have urged the Federal Trade Commission to abandon its policy of enforcing the Hart-Scott-Rodino Act against state-approved mergers and acquisitions. The groups argue that the FTC’s policy is “unprecedented” and “disregards Supreme Court precedent.” They also point out that the Louisiana attorney general had compelling reasons to approve the proposed merger of Louisiana Children’s Medical Center and HCA Healthcare, which was designed to increase access to clinical services and high-quality health care in the New Orleans region.
The American Hospital Association (AHA) and five other hospital associations have urged the Federal Trade Commission (FTC) to abandon its unprecedented policy of enforcing the Hart-Scott-Rodino Act (HSR) against state-approved mergers and acquisitions.
The letter, which was sent to FTC Chair Lina Khan, specifically cites the proposed merger of Louisiana Children’s Medical Center (LCMC) and HCA Healthcare as an example of a transaction that should not be subject to HSR review.
The AHA and its partners argue that the FTC’s enforcement of HSR against state-approved mergers is “unprecedented” and “disregards Supreme Court precedent.” They also point out that the Louisiana attorney general had compelling reasons to approve the LCMC-HCA merger, which was designed to increase access to clinical services and high-quality health care in the New Orleans region.
America’s Essential Hospitals, the Association of American Medical Colleges, the Children’s Hospital Association, the Federation of American Hospitals, and the Louisiana Hospital Association all signed the letter in addition to the AHA.
The letter is being released at a time when criticism of the FTC’s robust enforcement of antitrust rules is rising. The proposed mergers of AT&T and T-Mobile as well as Oracle and PeopleSoft, have both been challenged in court by the FTC in recent months.
The AHA and its partners are urging the FTC to reconsider its enforcement of HSR against state-approved mergers. They argue that the FTC’s current policy is “a threat to the ability of states to regulate their health care markets.” The FTC has not yet responded to the letter.
