FTC warns healthcare companies over price transparency

The Federal Trade Commission (FTC) has issued warning letters to 24 large healthcare services companies regarding hospital price transparency. The agency cautioned that providing price quotes that omit essential costs, such as physician or facility fees, may violate federal law under Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices.

While the Centers for Medicare & Medicaid Services (CMS) maintains regulations for hospital transparency, the FTC clarified that CMS compliance does not provide a ‘safe harbor’ from liability under the FTC Act. The commission emphasized that for routine, non-emergency care, patients have a right to clear, accurate, and comprehensive pricing information before receiving services. This includes all expected costs, such as equipment, staff, and facility fees, rather than just a single component of a procedure.

The FTC has not publicly named the 24 recipients of these letters, framing the move as a signal to the entire industry rather than a specific accusation against any single system. The agency stated it will continue to monitor the healthcare marketplace and take enforcement action as warranted.