Promoting Competition

PAI issues letter to the U.S. House of Representatives Subcommittee on Oversight and Investigations

On February 15, 2018, PAI submitted a letter to the U.S. House of Representatives Subcommittee on Oversight and Investigations that details the extent and impact of rapid consolidation that is occurring across the health care marketplace.  PAI expressed support for Congressional scrutiny into the potential concerns about a system dominated by large, powerful entities with enormous market power.  This trend can lead to higher prices for consumers, anticompetitive marketplace behavior designed to thwart competitors, restrictions on physician decision-making on patient care issues, and limitations on patients’ choice in and access to prescription drugs.

PAI’s letter also shares findings from an ongoing research collaboration with Avalere Health that examines the extent and impact of  hospital acquisitions of physician practices.  This research reveals a sharp growth in hospital acquisitions of physician practices - a remarkable 86% over a three-year period.  The research also demonstrates that Medicare and beneficiaries spend billions more a year for services provided in hospital settings than if those services were provided in the physician office setting.

PAI urged review of federal policies that have fueled this trend towards hospital-driven consolidation, as well as relief from outdated policies that restrict physicians from competing on a level-playing field with hospitals and other corporate entities that are moving quickly to dominate various aspects of the health care delivery system. 

“The vital role that physicians play in our health care system – providing high quality, cost-effective care to patients - should not be undermined by the push towards corporatization” said Robert W. Seligson, PAI President.   “It is important to advance policies that  encourage and support greater competition throughout the health care marketplace, including competition by physician-led organizations. ”‚Äč

Letter (PDF)

Press Release (PDF)