Former DOJ Officials Call for Antitrust Action Against Growing Power of Healthcare Conglomerates

Recent insights from former officials of the U.S. Department of Justice emphasize the urgent need to scrutinize the expanding size and influence of large healthcare conglomerates. In an opinion piece published in JAMA, a professor from Carnegie Mellon University's Heinz College and a prominent legal expert argue that these extensive healthcare platforms now exhibit many characteristics similar to major technology corporations, raising significant concerns about competition and market fairness.

Over the past decade, antitrust policies have primarily focused on big tech companies, but these experts highlight that the healthcare industry is experiencing a comparable trend of consolidation. Today’s dominant healthcare entities are no longer limited to traditional segments like insurers or hospitals; they increasingly encompass diverse services such as pharmacy benefit management, physician practices, home health agencies, data warehouses, and analytics firms—all under one corporate umbrella. This phenomenon, termed the "platformization" of healthcare, results in integrated platforms like UnitedHealth and CVS Health dominating multiple facets of the healthcare ecosystem.

The implications of this consolidation are alarming. It creates significant barriers for new entrants, alters competitive dynamics, and fosters conflicts of interest. Moreover, the concentration of power diminishes opportunities for independent practitioners and hampers innovation in healthcare delivery. As these large platforms expand their reach, the risk of monopolistic practices grows, potentially making healthcare more expensive, less responsive, and less accessible.

Kanter and Gaynor warn that unless there is active regulatory intervention, these powerful platforms could entrench their dominance further, leading to a detrimental impact on the healthcare system. They advocate for considering various remedies, including structural interventions like breaking up dominant firms, to restore competitive markets.

This call to action underscores the importance of vigilant antitrust enforcement to prevent unchecked growth of healthcare conglomerates, ensuring fair competition and fostering innovation for better patient care.

Source: https://medicalxpress.com/news/2025-04-doj-antitrust-attention-action-traits.html