US: FTC staff weighs in at final hospital merger public hearing

The time for public hearings on the proposed hospital merger in our area has ended with Monday’s Johnson City. Now the Tennessee Department of Health has 53 days left to make a decision whether to recommend the merger between Mountain States Health Alliance and Wellmont Health System.

About 50 people were in attendance, more than 20 taking the chance to speak. People were able to address the Tennessee commissioner of health, John Dreyzehner, directly. Most of the comments were positive, throwing support behind the merger. Many said they believe it would streamline patient care, lower healthcare costs, and benefit the area economically.

A handful of speakers maintained the merger would create a dangerous monopoly.

“There’s a lot of hope and optimism. There’s quite a bit of concern as well,” Dreyzehner said. “We hear a little more concern in the written comments than we do in the public comments typically.”

One of those was Federal Trade Commission staff member Alexis Gilman, assistant director of the Mergers IV Division of the Bureau of Competition. He said he did not speak officially on behalf of the FTC but he is authorized to give public remarks.

“Our experience and economic studies show mergers that substantially reduce competition typically lead to higher prices, reduced incentive to maintain or improve quality, and reduced access to care,” Gilman said. We think that’s a real and significant risk. To try and compensate and mitigate those harmful effects, the parties have proposed a series of commitments that they believe will mitigate and prevent those harms. We don’t think there’s enough detail in those commitments, we think there are gaps in those commitments, and we don’t think they’re sufficient to constrain the parties from being able to reduce prices.”

Dreyzehner said the Tennessee Department of Health will consider all of the comment, including the opinion of the FTC. The commission already issued a report opposing the merger in Virginia.

Full Content: WCYB News

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.