Category: Antitrust
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Virginia Hospital Profits Soared Far Above National Averages – Again – in 2021
by James C. Sherlock The predictions for hospital finances in 2021 forecast Armageddon. Then the actual financial data from 5,600 U.S. hospitals in 2021 were assessed. Based on those data the median operating margin for U.S. hospitals in 2021 was actually a loss of 1.5%. Meanwhile, the average operating margin for hospitals was a loss of…
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Virginia Supreme Court Gives Hope to Competitors of Regional Healthcare Monopolies
Is the Virginia Antitrust Act now in play? by James C. Sherlock There is good news this morning for those of us hoping for more competition to regional healthcare monopolies in Virginia. The Virginia Supreme Court (the Court) overturned the decision of the State Health Commissioner to deny the application of the Chesapeake Regional Medical Center…
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Fix the Virginia Department of Health
by James C. Sherlock Governor Youngkin and his new administration have an opportunity to fix crucial problems in the Department of Health that have been festering for decades. The issues: How can Virginia regulate effectively its state-created healthcare monopolies? In a directly related matter, how can we fix the failures, famously demonstrated during COVID, of…
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COPN’s Regional Monopolies Helped Boost Virginia Hospitals’ Operating Margins to more than 3x National Median in 2020
by James C. Sherlock Virginians have been assured forever by the hospital lobby that the non-profit regional monopolies established and protected by COPN nearly everywhere but Richmond: are benign public servants with a charitable mission; certainly don’t drive up costs; that competition does not matter; that the State Medical Facilities Plan on which COPN is…
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Another Brick in the Wall Around Sentaraland
by James C. Sherlock Which one of these doesn’t match? Story in Virginia Business Dec. 20: EVMS, ODU and Sentara sign health center agreement. Eastern Virginia Medical School, Old Dominion University and Sentara Healthcare entered into a memorandum of understanding Friday to work toward a collaborative academic health center…. That’s right. EVMS and ODU are…
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Should Choice of Supplier Extend to Natural Gas?
by Steve Haner Should there be retail choice for natural gas? The developers of a proposed natural gas-fired merchant electricity plant are testing the waters with a proposal to bypass their local monopoly supplier by building their own one-customer pipeline to another source. In the electricity arena, this is an old issue as large industrial…
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Sentara, Cone Health Call Off Merger
From Virginia Business: “Sentara Healthcare and Greensboro, North Carolina-based Cone Health mutually called off a merger Wednesday, according to a statement by the Norfolk-based health care system.” The Sentara Healthcare Board of Directors and the Cone Health Board of Trustees came to the mutual agreement to end affiliation plans late last week, according to the…
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Chesapeake Regional Medical Center Sues Sentara – Again
by James C. Sherlock A tip of the hat to my friends at Checks and Balances Project for alerting us to a new civil suit filed April 27 against Sentara by Chesapeake Regional Medical Center (CRMC). I will comment on Sentara’s response to the suit when it is available. The complaint alleges various instances of…
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Hospitals 1, Patients 0
by James C. Sherlock Since January 1 of this year, after a court battle won in late December 2020 by the Trump Justice Department, the Centers for Medicare/Medicaid Services (CMS) has required hospitals to post median payer-specific negotiated rates. I figured the fix was in when most hospitals in Virginia still haven’t complied. The Virginia…
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COPN Drives Richmond’s Tuckahoe Orthopedics to Be Acquired to Survive
by James C. Sherlock This is pretty straightforward. COPN is driving a physician shortage in Virginia because doctors are not granted the independence to practice the way they want to with the facilities and equipment they need and that in turn is depressing their incomes. Reversing Robin Hood, COPN takes from the physicians and gives to…
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New Antitrust Laws Promise Scrutiny of Virginia’s Healthcare Monopolies
by James C. Sherlock I have written here extensively on the necessity to enforce federal antitrust laws against the anticompetitive activities of some of Virginia’s regional healthcare monopolies. I am happy to report federal legislative changes from the past year that will strengthen the enforcement of those laws. First, the Antitrust Criminal Penalty Enhancement and…
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Medicaid and Medicaid Rate Increases Boost Virginia Hospital Profitability
by James C. Sherlock Virginia in 2018 both expanded Medicaid and increased Medicaid reimbursement rates. Those changes orchestrated by Virginia hospitals took effect in 2019 and resulted in a major financial windfall to those same hospitals. I have compared the 2018 and 2019 Hospitals Operating and Total Margins spreadsheets published by the state through…
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Certificate of Public Need’s Hall of Mirrors
by James C. Sherlock In Versailles’ Hall of Mirrors, everything is reflected hundreds of times. The mirrors were also a commercial. They represented an effort of Louis XIV to establish for France monopolies on the production of luxury goods. Virginia’s Certificate of Public Need (COPN) law and regulations represent a similar structure. Everything in the…
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Certificate of Public Need – This Seems Promising
by James C. Sherlock Democrats, the primary bulwarks for the Certificate of Public Need (COPN) law in Virginia, took the opportunity last year to create as part of a major revision to COPN law a new 19-member State Health Services Plan Task Force. That group is to advise the Board of Health on the content…
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Virginia’s Legendary Corruption Blocks Antitrust Enforcement
by James C. Sherlock Readers of this blog have indicated an unquenchable appetite for information about and discussion of Virginia’s Certificate of Public Need (COPN) law and its administration. This essay informs on the negative impacts of the COPN law and the Virginia Antitrust Act (the Act) itself on the enforcement of antitrust laws against Virginia’s…