How one billionaire is fighting hospital monopolies
John Arnold, a Texas billionaire, has a gear to grind with big hospital monopolies.
His philanthropic organization is financially backing lawsuits against giant hospital systems in Wisconsin, Connecticut and North Carolina, according to The Wall Street Journal. The suits allege these giant hospital systems are quashing competition and inflating prices, while the hospitals themselves call the claims baseless.
However, Arnold is not the only one pursuing the breakup of huge hospital systems. In fact, the Federal Trade Commission (FTC) recently cracked down on proposed acquisitions by HCA Healthcare over antitrust issues. Additionally, the city of Brevard, North Carolina, hit HCA with a lawsuit for alleged monopoly activities in seven counties in the state.
Arnold Ventures is supporting the work of Fairmark Partners LLP, the law firm behind the lawsuits, according to the WSJ. The firms believe reforming hospital markets through the courts is the only effective way to rebalance care quality and costs for patients.
“I don’t think there’s really any enforcement failure that’s had a larger negative economic impact for consumers than the failure to enforce antitrust laws against hospitals,” Fairmark’s Brennan Bilberry, who expects the firm to file more lawsuits elsewhere in the U.S, told the WSJ.
Arnold, who made his fortune as an energy trader at Enron Corp., has had other philanthropic ventures, including doling out more than $2.5 billion for issues such as criminal justice and gun law reform. His foundation, which was created with his wife, Laura, has already given $358 million across the healthcare industry.
The news of Arnold’s involvement comes as more entities shine a light on hospital mergers and mega-mergers, as there is some evidence to show consolidation does increase prices for patients.
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Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."