Legal
FTC Sends Price Transparency Warning Letters to 24 Health Systems
In a client alert, King & Spalding reports that FTC Chairman Andrew Ferguson sent warning letters on October 5, 2026 to twenty-four large health systems, cautioning that compliance with CMS hospital price transparency rules does not shield providers from separate FTC enforcement. The letters state that Section 5 of the FTC Act independently requires timely, accurate, and complete pricing disclosures, particularly for non-emergency services scheduled in advance. The FTC has not identified the recipients and says it will not do so. The action signals heightened federal scrutiny of hospital pricing practices beyond existing CMS transparency requirements.
Why it mattersHospitals and health systems serving Medicaid managed care enrollees now face dual compliance exposure, since meeting CMS price transparency rules will not insulate them from FTC enforcement actions over inaccurate or incomplete pricing disclosures.