FTC Issues Letters Warning Hospitals Against Deceptive Pricing Practices

Federal Trade Commission Chairman Andrew N. Ferguson today sent letters to 24 of the nation’s largest healthcare services companies, reminding them of their legal obligation to provide patients with timely, accurate and complete pricing information for healthcare services, and that failing to do so can be an unfair or deceptive practice. 

The letters sent today are part of the Trump FTC’s ongoing commitment to promote healthcare affordability and price transparency for consumers. 

The letters highlight concerns that healthcare services companies may violate the FTC Act by failing to provide transparent price information, particularly for routine and non-emergency medical care scheduled in advance.

Healthcare is among the largest and most consequential expenses American families face, yet patients are routinely asked to commit to care without knowing what it will cost and with prices for the same service often differing dramatically from one facility to the next. When patients are not told the true price in advance, the letters explain, both consumers and competition suffer. This also means patients cannot comparison shop or make informed decisions, and providers that deal honestly and transparently are put at a competitive disadvantage.

The letters emphasize that the Centers for Medicare & Medicaid Services’ price transparency rules establish a critical baseline for ensuring that healthcare facilities provide pricing information. However, compliance with these CMS requirements does not mean that a healthcare facility has met its obligations under Section 5 of the FTC Act. The CMS rules do not create a safe harbor from FTC Act liability.