H.R.3016 - Combatting Hospital Monopolies Act (119th Congress)
Summary
H.R.3016, the "Combatting Hospital Monopolies Act," aims to grant the Federal Trade Commission (FTC) authority over certain tax-exempt hospital organizations and cooperative hospital service organizations described in section 501(c)(3) of the Internal Revenue Code. This bill amends Section 4 of the Federal Trade Commission Act to include these organizations within the FTC's regulatory purview. The bill seeks to address concerns related to hospital monopolies and their potential impact on healthcare costs and competition.
The bill was introduced in the House of Representatives on April 24, 2025, and referred to the Committee on Energy and Commerce. The main goal is to ensure that tax-exempt hospitals are subject to the same antitrust scrutiny as other corporations.
By expanding the FTC's authority, the bill intends to prevent anti-competitive practices within the healthcare industry, potentially leading to more affordable and accessible healthcare services.
Expected Effects
The likely effect of this bill, if enacted, is increased oversight of tax-exempt hospital organizations by the FTC. This could lead to investigations and potential legal actions against hospitals engaging in monopolistic practices.
It could also result in hospitals being more cautious about mergers and acquisitions that could reduce competition. Ultimately, this could lead to lower healthcare costs and improved access to care for patients.
The change will likely increase regulatory compliance costs for affected hospitals.
Potential Benefits
- Increased competition: By preventing hospital monopolies, the bill could foster a more competitive healthcare market.
- Lower healthcare costs: Increased competition may lead to lower prices for medical services and procedures.
- Improved access to care: A more competitive market could result in better access to healthcare services for patients in underserved areas.
- Greater transparency: FTC oversight could lead to greater transparency in hospital pricing and business practices.
- Prevention of anti-competitive behavior: The bill aims to prevent hospitals from engaging in practices that stifle competition and harm consumers.
Potential Disadvantages
- Increased regulatory burden: Tax-exempt hospitals may face increased compliance costs due to FTC oversight.
- Potential for overreach: The FTC's authority could be used to interfere with legitimate hospital mergers or collaborations.
- Unintended consequences: Increased regulation could lead to reduced investment in hospital infrastructure and services.
- Legal challenges: The bill could face legal challenges from hospitals arguing that it infringes on their tax-exempt status.
- Disruption of healthcare services: Aggressive enforcement by the FTC could disrupt the delivery of healthcare services in some communities.
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. Hospital monopolies can affect interstate commerce by influencing healthcare costs and access across state lines.
There is no apparent conflict with the First Amendment, as the bill does not target religious or expressive activities. The Fifth Amendment's Due Process Clause could be relevant if the FTC's actions are perceived as arbitrary or unfair, but the bill itself does not inherently violate due process.
Overall, the bill seems to fall within the scope of Congress's constitutional authority to regulate commerce and promote the general welfare.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).