By Robert Kerwin

On Monday the U.S. Department of Health and Human Services announced the creation of a new HHS officer position entitled ‘chief competition officer’ to promote competition and lower health care costs.

Stacy Sanders, most recently counselor to HHS secretary Xavier Becerra, will assume the role.
While some industry observers had suggested that a ‘2021 Presidential Executive Order on Promoting Competition in the American Economy’ may not include health care matters, it appears clear now that it does.

Secretary Becerra noted: “[w]e are thrilled to have Stacy Sanders take on this new role and continue her tireless work to lower healthcare and prescription drug costs.”

Her new responsibilities will include playing a leading role in working with the FTC and the Department of Justice to address concentration in healthcare markets through data-sharing, reciprocal training programs and development of healthcare competition policy initiatives. Though the full agenda of the chief competition officer is unclear, FDA matters as they might pertain to competition may be within its purview.

The announcement dovetails with a December 2023 announcement by the FTC, Department of Justice and HHS that they will engage in data-sharing to the extent possible with each agency naming health care competition officers to lead these efforts.

“IAMERS has long advocated for joint federal department-agency oversight in healthcare competition issues," said Diana Upton, president of the International Association of Medical Equipment Remarketers and Servicers. "We are very pleased with these developments and pledge to continue to voice the concerns of our members for level playing fields.”

Nathan Proctor, senior director, U.S. PIRG Campaign for Right To Repair, acknowledged both frustration and hope with these new appointments: “Out of control costs are one of the biggest challenges to the American healthcare system. Every way in which we can cut costs while maintaining quality, we should explore, which includes medical right to repair. I’m hopeful that with these appointments of officers these agencies will engage more in device repair competitions."

While some will say that the focus of these competition appointments will not address these concerns, the statements of FTC chair Lina Khan last month suggest more: “Safeguarding fair competition and rooting out unlawful business practices in healthcare markets is a top priority for the FTC. We will continue to fire on all cylinders to protect patients, healthcare workers and competition in these critical markets.”

About the author: Robert J. Kerwin is general counsel to IAMERS, the International Association of Medical Equipment Remarketers and Servicers.

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