Navigating the Intersection of Healthcare and Federal Trade Commission: Understanding the Application of FTC Act

The Federal Trade Commission Act (FTC Act) is a federal law that prohibits anticompetitive practices and promotes consumer protection. Healthcare operations are not exempt from the reach of the FTC Act. In fact, the FTC Act can apply to a healthcare operation in several ways.

First, the FTC Act may apply if a healthcare operation engages in anticompetitive behavior. For example, if a hospital merges with another hospital and the resulting entity has a significant market share, the FTC may investigate whether the merger will harm competition and result in higher prices for consumers.

Second, the FTC Act may apply if a healthcare operation engages in deceptive advertising or marketing practices. For instance, if a hospital advertises that its physicians have a higher success rate in a certain procedure than the national average, but the data is misleading or inaccurate, the hospital could be in violation of the FTC Act.

Third, the FTC Act may apply if a healthcare operation engages in unfair or deceptive billing practices. For example, if a hospital bills patients for services they did not receive or charges patients an unreasonable amount for a service, the hospital could be in violation of the FTC Act.

In conclusion, healthcare operations must be aware that the FTC Act can apply to their activities. To avoid potential violations of the FTC Act, healthcare operations should ensure that they engage in fair and competitive practices, provide accurate information to consumers, and bill patients fairly and transparently.