Lisa McCormick calls for health care reform to combat greed & monopolies

Lisa McCormick, a leading advocate for systemic health care reform, says there is an urgent need to address hospital monopolies and corporate greed that adversely affect service delivery in the United States.

McCormick argues for a transformative shift towards a government-run healthcare system, akin to the United Kingdom’s model, or a single-payer insurance system, similar to Canada’s approach.

The New Jersey Democrat cited a recent bipartisan effort spearheaded by U.S. Representatives Pramila Jayapal and Victoria Spartz who on December 13, introduced the Stop Anticompetitive Healthcare Act, which underscores the severity of the issue.

This bipartisan legislation would amend the Federal Trade Commission Act, expanding antitrust enforcement to include nonprofit hospitals.

According to data from the American Hospital Association, nonprofit entities constitute over 48 percent of all U.S. hospitals.

However, despite the Federal Trade Commission’s jurisdiction over hospital mergers, antitrust laws are not enforceable against anticompetitive practices of nonprofit entities. This legal gap has contributed to soaring healthcare costs and reduced patient choice.

“The detrimental impact of hospital consolidation is leading to increased care costs and diminished health outcomes for patients,” said McCormick.

“Health care is a human right, and there’s no reason why, in the richest country in the world, people shouldn’t be able to access quality, affordable health care,” said Jayapal. “But too often, the corporations that run hospital chains put profits over patients – leading to worse outcomes and massive, unpayable bills. My bill with Congresswoman Spartz will put in place critical guardrails to rein in predatory practices.”

Republican Congresswoman Victoria Spartz, Democratic Congresswoman Pramila Jayapal and progressive Democrat Lisa McCormick are in agreement on one aspect of restraining health costs through this bipartisan legislation, which would amend the Federal Trade Commission Act, expanding antitrust enforcement to include nonprofit hospitals.

“The rule of law is a principle under which all individuals and entities are accountable to the laws that are equally enforced,” said Spartz. “The Stop Anticompetitive Healthcare Act fixes a loophole allowing tax-exempt hospitals to avoid antitrust enforcement.”

The detrimental effects of hospital mergers on healthcare pricing were highlighted in a 2020 report by the Medicare Payment Advisory Commission, revealing a correlation between mergers and higher healthcare costs for patients.

Furthermore, FTC standards indicate that 90 percent of hospital markets are highly concentrated, with a single hospital system often dominating more than a 50 percent market share.

Studies tracking consolidation have found that in the years following mergers, the average cost of a hospital stay has gone up as much as 54 percent and that hospitals without competitors in a 15-mile radius have prices that are 12 percent higher than hospitals with competitors.

Between 2010 and 2017, there were 778 hospital mergers across America and by 2017, 66 percent of all hospitals were part of a consolidated system.

“Provider consolidation—when two or more healthcare entities, such as hospitals, insurers, or pharmaceutical manufacturers, join together under common ownership through a merger or acquisition—may allow providers to operate more efficiently, or help struggling providers keep their doors open in underserved areas, but it also reduces competition that is a necessity for market forces to function,” said McCormick.

The Stop Anticompetitive Healthcare Act would expand the Federal Trade Commission’s jurisdiction to give the agency enforcement authority over non-profit and certain tax-exempt hospital organizations, ensuring that the FTC can intervene and block anticompetitive actions and monopolistic practices.

“The Stop Anticompetitive Healthcare Act would close a glaring gap in the FTC’s oversight of hospital conduct and its ability to promote robust competition among hospitals. Granting the FTC this authority to monitor and bring conduct enforcement cases forward will ensure that nonprofit hospitals are held accountable. Closing this oversight gap will benefit patients and their communities,” said Emily Gee, senior vice president at the Center for American Progress.

McCormick echoed these concerns, noting that hospital consolidation and lack of competition are key drivers of unsustainable healthcare prices. She emphasized the unacceptable rates of medical debt, affecting millions of Americans, stressing that nonprofit hospital status should not be exploited to evade antitrust enforcement.

McCormick’s advocacy reflects a growing bipartisan recognition of the urgent need to address healthcare monopolies and greedy corporate practices that prioritize profits over patient care.

Her call for a healthcare system overhaul resonates with the pressing challenges faced by individuals and families across the country.