The Federal Trade Commission sent warning letters to 24 of the “nation’s largest” healthcare services companies, citing concerns that they may be failing to provide transparent price information.
The letters were signed by FTC Chairman Andrew N. Ferguson. The agency did not disclose which organizations it sent the letters to.
It notes in the letter that Section 5 of the FTC Act requires these organizations to provide patients with “timely, accurate, and complete pricing for healthcare services, especially for non-emergency services that are scheduled in advance.” The agency urged the organizations to conduct a review of their pricing practices and make changes if they find they’re in violation of the FTC Act.
The letter also stated that price transparency is a major priority of the FTC across several sectors, including rental housing, hotels and grocery delivery services. Consumers can’t compare offerings and make informed decisions without price transparency, the letter said.
“Price transparency is particularly critical in the hospital and healthcare setting because healthcare is often one of the most significant and financially burdensome costs consumers face,” Ferguson wrote in the letter. “Patients frequently must invest substantial time and effort to travel for in‑person visits, making it even more important that they understand costs upfront before committing to care. Moreover, hospitals and healthcare facilities can charge dramatically different prices for the same services, leaving consumers vulnerable to wide and often unexpected cost discrepancies.”
CMS requires hospitals to publicly disclose pricing information for healthcare services through machine-readable files and consumer-friendly pricing information. They also must provide uninsured and self-pay patients with good-faith estimates of expected charges before scheduled care. However, the FTC stated that complying with CMS price transparency requirements doesn’t necessarily mean a healthcare provider is complying with the FTC Act, which may impose additional requirements.
The letter notes that the price of healthcare services is a “material term,” meaning “clear and conspicuous disclosures” are needed so consumers are not deceived.
“Accordingly, failing to disclose the price of a healthcare service may be deceptive if it is likely to mislead consumers acting reasonably under the circumstances,” Ferguson wrote. “Even when some price terms are disclosed, disclosures may be deceptive when they are incomplete — such as when they omit certain charges like physician fees or facility fees, or cover only a portion of the expected care — because consumers may reasonably believe they have been provided the total cost of care. Likewise, inaccurate disclosures mislead consumers and cause substantial harm.”
The FTC said the letters do not conclude that the recipients violated the FTC Act.
Photo: Oleksandr Hruts, Getty Images
