Dive Brief:
- The HHS has named its first chief competition officer, a new role that aims to boost competition in healthcare in an effort to lower rising costs.
- Stacy Sanders, who previously served as a counselor to HHS Secretary Xavier Becerra and as a Senate staffer, will work with the Federal Trade Commission and the Department of Justice to focus on consolidation in the healthcare industry by sharing data, creating reciprocal training programs and developing new competition policy initiatives, the agency announced on Monday.
- The appointment comes as the Biden administration has focused on cracking down on consolidation in healthcare, which critics say increases costs and downgrades care quality.
Dive Insight:
Consolidation in the healthcare industry, particularly among hospitals, has become a growing concern for researchers and policymakers as healthcare costs rise in the U.S. Studies have shown hospital M&A often drives up prices and can lead to diminished quality of care.
Last month, the FTC and DOJ finalized updated merger guidelines that could slow the pace of healthcare dealmaking. The updated guidelines will likely give regulators more options to dispute deals that have previously been difficult to challenge, like vertical and cross market deals or private equity roll-ups of multiple companies.
While not legally binding, the guidance functions as a framework for the antitrust agencies when considering proposed deals and for courts while overseeing challenges to consolidation.
As part of the new chief competition officer role, Sanders will find and coordinate opportunities across the HHS to push for competition in the healthcare industry. She’ll also continue to lead work focused on lowering costs for prescriptions and healthcare services.
Sanders joined the agency in November 2022, working as a counselor to the HHS secretary to oversee implementation of the Inflation Reduction Act as well as policies to promote competition and work in long-term care and Medicare.
She previously served as staff director of the Senate Special Committee on Aging for Sen. Bob Casey Jr. (D-Penn.).
