The Federal Trade Commission is investigating DaVita and Fresenius Medical Care, two of the country's largest dialysis providers, over allegations their noncompete clauses illegally stifle smaller competitors, Politico reported July 13.
The investigation focuses on the companies' noncompete agreements illegally thwarting rivals' efforts to increase dialysis access, sources close to the matter told Politico.
Sources told Politico that the investigation, which focuses on nephrologists' contracts, began earlier this year and is in its early stages.
DaVita and Fresenius both sign contracts, which include noncompetes, with physicians to serve as medical directors in their clinics. Those clauses include bans on physicians serving as medical directors in any competing setting, including a patient’s home, in the same geographic market.
The FTC has ramped up antitrust enforcement against healthcare mergers and acquisitions over the last three years. The move comes after the FTC voted to ban noncompete clauses for most U.S. workers in April, although the ban is facing a preliminary injunction from a federal court in Texas.
"We are cooperating with the commission staff to answer their questions and demonstrate the advantages of our structure in serving the kidney care community," DaVita spokesperson Karen Modlin told Politico. "We are confident the analysis will show that we have enhanced competition and that our practices promote valuable investments for the betterment of physicians, clinic staff, and patients."
“We are aware of the inquiry and are fully cooperating with the FTC," DaVita spokesperson Karen Modlin told Becker's. "As this is an ongoing investigation, we cannot comment any further.”
The FTC declined to comment.
Becker's has reached out to DaVita and will update the story if more information becomes available.