FTC Martin Gaynor is Advised That A Key Study on Hospital Mergers Is Inaccurate

WASHINGTON, Sept. 30, 2013 /PRNewswire-USNewswire/ -- Martin Gaynor, the newly appointed head of the FTC Bureau of Economics, begins his job this week. One of the documents on his desk is a recently completed report by the Center for Regulatory Effectiveness (CRE) which demonstrates that a key study cited by authorities regarding the effects of hospital consolidation is inaccurate.

The CRE report tilted: "A Signature Study on Hospital Consolidation Violates the Data Quality Act" was prepared by former White House Office of Management and Budget officials who were the initial proponents of the Data Quality Act.

The report concludes:

"The study is not compliant with the Data Quality Act and therefore could not be used by any federal agency."

"The study's contention that enhanced antitrust enforcement would not benefit healthcare consumers ignores the antitrust enforcement exemption healthcare insurers enjoy under the McCarran-Ferguson Act."

Recognizing the important role that both the Department of Justice and the FTC have in the review of hospital consolidations, CRE has forwarded both agencies a copy of its report for comment.

The CRE study is here
http://thecre.com/hcf/wp-content/uploads/2013/09/CRE-HospitalConsolidation.Final_.pdf

The FTC may not be able to handle press inquiries after today because of the potential government shutdown.

SOURCE Center for Regulatory Effectiveness