A battle over the effects of health care industry consolidation has broken out in Washington, the likes of which hasn’t been seen in years.
Just when it seemed that Americans had become blasé about anti-trust matters, the Athem-Cigna and Aetna-Humana deals have brought the anti-trust soup back to a boil.
Modern Healthcare was on hand last week to report on the histrionics the mergers have touched off. During a hearing before the House Judiciary Committee’s Antitrust Subcommittee, members of opposing political parties were shouting at each other across the aisle and health care lobbying groups squared off from opposite sides of the debate.
The boiling point came after a couple of months of more sedate — but still emotionally loaded — commentary on the mergers and what the expected outcome could be if the government allowed them to go forward.
Opponents say such mergers will rob consumers of choices and drive up the cost of health care, which was just starting to be controlled by a massive nationwide effort. The American Medical Association raised concerns before the subcommittee, including the specter of fewer choices for physicians and patients.
Others, such as the American Hospital Association, argued at the hearing that mergers would improve performance at more hospitals because larger owners can provide members with greater resources.
“Many small, stand-alone and rural hospitals are particularly in need of partners,” testified Rick Pollack, CEO of the American Hospital Association. “The cost of acquiring and maintaining electronic health records … can tip the financial balance of these organizations.”
At the end of the session, Modern Healthcare reported, not much had been achieved beyond an airing of opposing views. But stay tuned — more hearings in the House and Senate are scheduled for later this month.
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Dan Cook
Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.
