HHS released a report in response to the Consolidation in Healthcare Markets Request for Information (RFI) – PDF, highlighting the impacts of increasing consolidation in our nation’s healthcare markets and recent influx of Private Equity (PE) and other private investors active in the space. The cost of healthcare has been outpacing wage growth for patients for decades, putting strain on both public and private budgets and limiting access. One of the main factors contributing to unsustainable healthcare inflation has been growing consolidation in the healthcare sector and the lack of meaningful competition. In December 2023, the Federal Trade Commission (FTC), Department of Justice (DOJ), and Department of Health and Human Services (HHS) announced a tri-agency collaboration to promote competition in healthcare markets. As part of that effort, the tri-agency RFI was released in March 2024 to understand how certain healthcare market transactions executed by health systems, private insurers, private equity funds and other private investors may increase consolidation and compromise patients’ health, quality of care, and affordability, while also threatening workers’ safety, satisfaction, and wages, and creating taxpayer burden. This RFI sought to inform potential actions the agencies could take to build on recent steps taken by the FTC, DOJ, and HHS to improve healthcare competition.
Over 2,000 unique and relevant comments were submitted from across the country, including comments from patients, physicians, health systems, insurers, industry associations, labor unions, and academic researchers. All comments were qualitatively reviewed and categorized by subject matter, relevant source of law, and other pertinent variables. An interagency team reviewed both the tabulations and underlying comments, the results of which informed this report. HHS’ Consolidation in Healthcare Markets RFI Response – PDF synthesizes findings and highlights certain key facts, lessons, and ideas gleaned from the comments. It is not intended to be a comprehensive summary of all topics, but instead focuses attention on evidence, trends, and policy ideas that deserve greater scrutiny and consideration. HHS, DOJ, and FTC will continue to use the comments to inform regulatory and policy actions.
