Congress explores impact of health sector consolidation

WASHINGTON — The Judiciary Committee of the House of Representatives on Thursday morning convened to discuss the ramifications of consolidation in the healthcare sector. 

 

"One of the principal tenets of economics is that competition can lead to lower prices, enhanced product variety, greater innovation and downward pressure on costs," Rep. Bob Goodlatte, R-Va., said. "When markets consolidate, there exists the potential for reduced competition resulting in the contraction of the related benefits," he said. "Continuous and vigilant oversight, such as at today’s hearing, will help to ensure that health care markets operate as freely and competitively as possible, in order to provide consumers with premier and affordable health care."

 

“We commend today’s hearing and other efforts by Congress and federal regulators to conduct a thorough examination of the significant consolidation occurring in the health care marketplace," commented Douglas Hoey, CEO of the National Community Pharmacists Association. "Policymakers cannot allow the ‘merger mania’ gripping the nation to proceed in a way that harms patients and the community pharmacists who serve them," he said. 

 

“In the past, NCPA has expressed concerns regarding similar proposed mergers of other corporate giants in the health care realm — most notably involving the consolidation of pharmacy benefit management corporations. Already independent community pharmacies grapple with one-sided, take-it-or-leave-it contract terms from PBM corporations that hamper patient access and the ability of pharmacists to provide top-notch care. Additional consolidation may exacerbate this problem by increasing the disproportionate leverage health insurers have over providers," Hoey added.