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HR 3016119th CongressIn Committee

Combatting Hospital Monopolies Act

Introduced: Apr 24, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

The Combatting Hospital Monopolies Act would expand the Federal Trade Commission’s (FTC) oversight to certain tax-exempt hospital entities. Specifically, it amends the FTC Act’s definition of the term “Corporation” to include hospital organizations and cooperative hospital service organizations that are described in section 501(c)(3) of the Internal Revenue Code and exempt under section 501(a). In practical terms, this means nonprofit hospitals and certain nonprofit hospital service organizations would fall under the FTC’s authority to enforce antitrust and consumer protection rules—traditionally aimed at for-profit corporations—when they engage in unfair methods of competition or deceptive practices. The bill’s intent appears to be enhancing scrutiny of hospital markets to curb monopolistic behavior and protect patients and communities.

Key Points

  • 1Short title: This Act may be cited as the “Combatting Hospital Monopolies Act.”
  • 2Core change: Amends Section 4 of the Federal Trade Commission Act by expanding the definition of “Corporation” to include hospital organizations and cooperative hospital service organizations that are 501(c)(3) nonprofit entities.
  • 3Scope of authority: By adding these hospital entities to the FTC’s definitional reach, they become subject to the FTC’s existing authority over unfair methods of competition and unfair or deceptive acts or practices.
  • 4Targeted entities: Described specifically as hospital organizations or cooperative hospital service organizations that are tax-exempt under 501(c)(3) and exempt from taxation under 501(a).
  • 5Status and process: Introduced in the House (April 24, 2025) and referred to the Committee on Energy and Commerce; no further legislative text beyond the definitional expansion is included in the provided bill.

Impact Areas

Primary group/area affected- Tax-exempt hospital organizations and cooperative hospital service organizations (501(c)(3) nonprofits): now explicitly subject to FTC oversight, including investigations and enforcement for unfair competition and deceptive practices.- Patients and communities served by nonprofit hospitals: potential improvements in market practices, pricing transparency, and access stemming from increased antitrust and consumer protection scrutiny.Secondary group/area affected- Hospitals and hospital systems: could face enhanced scrutiny of mergers, affiliations, exclusive contracts, joint ventures, and other competitive arrangements.- Healthcare providers and hospital service organizations: may need to adjust governance, contracting, and operational practices to remain compliant with FTC enforcement.Additional impacts- Market competition in the hospital sector: aim to reduce monopolistic or anti-competitive conduct, potentially influencing merger review, pricing dynamics, and patient choice.- Compliance and administrative costs: nonprofit hospitals and CHSOs may incur costs to ensure compliance with FTC rules and to respond to investigations.- Policy and regulatory landscape: signals a legislative push to unify oversight of for-profit and nonprofit hospital entities under current antitrust and consumer protection frameworks.
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