Heading: Addressing Competition Policy Challenges in the U.S. Healthcare Industry

In the U.S. healthcare sector, antitrust policy has been lagging behind industry developments for decades. However, with the start of the Biden administration in 2021, there was hope for a change. The administration promised to pursue aggressive competition policies to enhance competitiveness in the healthcare sector, particularly in hospital markets.

Despite this promise, it is unclear if significant policy changes have been implemented so far. Most healthcare competition policies remain within the realm of the two federal antitrust agencies, focusing on preventing mergers between hospitals and hospital systems. However, consolidation in the healthcare sector continues to persist, leading to higher costs and reduced competition.

The current challenges in the healthcare market include established monopolies engaging in exclusionary conduct, hospital acquisitions of independent physicians, and cross-market mergers. These challenges require a thorough update of competition policy to address the evolving landscape of the healthcare industry.

Suggestions for a revived competition agenda in the healthcare sector include engaging the federal Centers for Medicare and Medicaid Services in competition policy, confronting state immunities from federal antitrust enforcement, and bolstering fiduciary duties in the Employment Retirement Income Security Act of 1974. These actions, if implemented together, could significantly advance competition policy in the healthcare sector.

Overall, there is an urgent need to recognize the consequences of leaving healthcare consumers exposed to monopolized markets. Aggressive antitrust enforcement, along with creative market and regulatory initiatives, can unleash competitive forces that benefit consumers and the economy. It is essential to update competition policies to address new waves and types of provider consolidation and ensure a more competitive healthcare market.