The Federal Trade Commission (FTC) has issued a warning to Tennessee legislators regarding the potential risks to patients if proposed legislation is passed that would terminate the Certificate of Public Advantage (COPA) for Ballad Health. This COPA currently provides essential state regulatory oversight for the healthcare provider.

In a letter addressed to Tennessee Representative David Hawk, the FTC's Office of Policy Planning and Bureaus of Competition and Economics highlighted the anticompetitive consequences that could arise from the enactment of House Bill 2278 and Senate Bill 2414. These bills would allow the Ballad Health COPA to expire in June 2028, which could lead to increased healthcare costs and a decline in the quality of care available to patients.

The FTC has consistently advocated against the expiration of COPAs, arguing that without state regulatory oversight, monopolistic practices could flourish, leading to significant market power and adverse effects on healthcare services. The agency had previously opposed the merger that created Ballad Health in 2018, citing concerns over competition.

Additionally, the FTC addressed House Bill 819 and Senate Bill 1369, which propose the removal of Certificate of Need (CON) requirements for acute care hospitals. These requirements currently mandate state approval for healthcare providers before they can expand or establish new facilities. The FTC supports the removal of these barriers to enhance competition and improve healthcare access.

However, the FTC expressed concerns about the timing of the proposed CON law repeal, noting that there would be a gap between the expiration of the Ballad Health COPA in 2028 and the potential removal of CON requirements in 2030. This gap could hinder efforts to increase competition in Northeast Tennessee's healthcare market.

The FTC encourages the Tennessee General Assembly to consider its research and advocacy when deciding on the timing of the repeal of CON laws, emphasizing that prompt action could lead to improved competition and healthcare services in the region.