New Federal Portal Urges Public to Report Healthcare Anticompetitive Practices

HealthyCompetition.gov is the latest effort by federal regulators to monitor the ongoing consolidation of the healthcare sector.

The federal government wants the public to join its campaign against anticompetitive practices in healthcare.

The Federal Trade Commission, the Justice Department, and the Department of Health and Human Services on Thursday launched HealthyCompetition.gov, an "easily accessible online portal" that allows the public "to report healthcare practices that may harm competition."

"All too often, we hear how unfair methods of competition and monopolistic practices may be depriving Americans of access to affordable, high-quality healthcare," FTC Chair Lina M. Khan says. "This joint initiative between, FTC, DOJ, and HHS will provide a crucial channel for the agencies to hear from the public, bolstering our work to check illegal business practices that harm consumers and workers alike."

The confidential complaints will be reviewed by staff at the FTC and Justice Department, Antitrust Division, and if they have merit they will be subjected to further investigation. Ultimately, the actions could lead to formal investigations.

The portal is the latest initiative advanced by the FTC, DOJ and HHS, which in December 2023 issued a joint request for information to seek input on how private-equity and corporate control of healthcare is affecting the public.

The ongoing consolidation of payers, providers and drugmakers in healthcare sector and the role of private equity have gained the attention of state and federal regulators, employers – and the public – in the wake of high-profile debacles, including the Change Healthcare breach and the financial troubles of for-profit Steward Health Care.

At a hearing this week on the Change breach, House Energy and Commerce Chair Cathy McMorris Rodgers (R-WA) warned that "as our healthcare system becomes more consolidated, the impacts of cyberattacks – if successful – may be more widespread."

UnitedHealth Group acquired Change Healthcare in 2022 in a deal valued at $8 billion.

Even with the growing wariness by regulators, hospitals and health systems are increasingly pursuing mergers and acquisitions to stabilize their finances. Oftentimes, the smaller hospitals and systems are cash-strapped and have few alternatives to keep the doors open. The consulting firm Kaufman Hall reports that 28% of hospital mergers in 2023 involved a financially distressed partner, which was nearly double the amount in 2022 (15%) and the highest percentage since the data started being tracked.

Nonetheless, dozens of studies have shown that healthcare consolidations ultimately result in reduced services, lower care quality, and higher cost for consumers. Federal regulators have been criticized for their lack of action on the issue.

The nonprofit Washington Center for Equitable Growth this week called the federal response to healthcare consolidation "limited," even as "a wealth of evidence underscoring the severity of this issue and its profound financial and health implications for patients and local economies."

"The modest steps taken thus far fall short of addressing the breadth and depth of the problem," the research organization says.  

The privacy and confidentiality policies that govern information submitted through the portal, including any personal information members of the public choose to provide, can be found at: DOJ Privacy Policy, DOJ Antitrust Division Confidentiality Policy Regarding Complainants, and FTC Privacy Policy.