FTC Price Warnings Put Health Systems on Notice

Litigation and consumer protection attorney Benjamin Genn was quoted in a Law360 article about the Federal Trade Commission's (FTC) warning letters to 24 healthcare systems regarding potentially inaccurate or incomplete pricing information for routine and nonemergency services. The letters signal that compliance with Centers for Medicare & Medicaid Services (CMS) price transparency requirements may not fully satisfy healthcare providers' obligations under Section 5 of the FTC Act, particularly when disclosures omit physician fees, facility fees or other charges that contribute to the total expected cost of care.

Benjamin, who recently authored a Holland & Knight alert examining the warning letters and their implications for the healthcare industry, said providers should review consumer-facing disclosures, pricing tools and related practices before the FTC initiates a formal investigation. Healthcare systems that did not receive a letter should also evaluate whether their pricing information is timely, accurate and complete so they can identify and address potential gaps before the government comes knocking.

"A formal demand – a [civil investigative demand] – is a realistic and, I think, logical next step, considering the letters ask these entities to do a comprehensive review and take swift corrective action," he advised.

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