82 FR 20889 - Emerson Electric Co. and Pentair plc; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 82, Issue 85 (May 4, 2017)

Page Range		20889-20892
FR Document		2017-08965

The consent agreement in this matter settles alleged violations of federal law prohibiting unfair methods of competition. The attached Analysis to Aid Public Comment describes both the allegations in the complaint and the terms of the consent orders-- embodied in the consent agreement--that would settle these allegations.

Federal Register, Volume 82 Issue 85 (Thursday, May 4, 2017)

[Federal Register Volume 82, Number 85 (Thursday, May 4, 2017)]
[Notices]
[Pages 20889-20892]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-08965]

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FEDERAL TRADE COMMISSION

[File No. 161 0221; Docket No. C-4615]

Emerson Electric Co. and Pentair plc; Analysis To Aid Public
Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

-----------------------------------------------------------------------

SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair methods of competition.
The attached Analysis to Aid Public Comment describes both the
allegations in the complaint and the terms of the consent orders--
embodied in the consent agreement--that would settle these allegations.

DATES: Comments must be received on or before May 30, 2017.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/emersonelectricconsent online or on
paper, by following the instructions in the Request for Comment part of
the SUPPLEMENTARY INFORMATION section below. Write ``In the Matter of
Emerson Electric Co. and Pentair plc, File No. 161 0221'' on your
comment and file your comment online at https://ftcpublic.commentworks.com/ftc/emersonelectricconsent by following the
instructions on the web-based form. If you prefer to file your comment
on paper, write ``In the Matter of Emerson Electric Co. and Pentair
plc, File No. 161 0221'' on your comment and on the envelope, and mail
your comment to the following address: Federal Trade Commission, Office
of the Secretary, 600 Pennsylvania Avenue NW., Suite CC-5610 (Annex D),
Washington, DC 20580, or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Constitution Center,
400 7th Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC
20024.

FOR FURTHER INFORMATION CONTACT: Jonathan Platt (212-607-2819) or Ryan
Harsch (212-607-2805), FTC, Northeast Region, One Bowling Green, Suite
318, New York, NY 10004.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34,
notice is hereby given that the above-captioned consent agreement
containing consent order to cease and desist, having been filed with
and accepted, subject to final approval, by the Commission, has been
placed on the public record for a period of thirty (30) days. The
following Analysis to Aid Public Comment describes the terms of the
consent agreement, and the allegations in the

[[Page 20890]]

complaint. An electronic copy of the full text of the consent agreement
package can be obtained from the FTC Home Page (for April 28, 2017), on
the World Wide Web, at http://www.ftc.gov/os/actions.shtm.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before May 30, 2017.
Write ``In the Matter of Emerson Electric Co. and Pentair plc, File No.
161 0221'' on your comment. Your comment--including your name and your
state--will be placed on the public record of this proceeding,
including, to the extent practicable, on the public Commission Web
site, at https://www.ftc.gov/policy/public-comments. As a matter of
discretion, the Commission tries to remove individuals' home contact
information from comments before placing them on the Commission Web
site.
Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/emersonelectricconsent by following the instructions on the web-
based form. If this Notice appears at http://www.regulations.gov/#!home, you also may file a comment through that Web site.
If you file your comment on paper, write ``In the Matter of Emerson
Electric Co. and Pentair plc, File No. 161 0221'' on your comment and
on the envelope, and mail it to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite
CC-5610 (Annex D), Washington, DC 20580, or deliver your comment to the
following address: Federal Trade Commission, Office of the Secretary,
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex
D), Washington, DC. If possible, submit your paper comment to the
Commission by courier or overnight service.
Because your comment will be placed on the publicly accessible FTC
Web site at www.ftc.gov, you are solely responsible for making sure
that your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . is privileged or confidential''--as provided by
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2),
16 CFR 4.10(a)(2)--including in particular competitively sensitive
information such as costs, sales statistics, inventories, formulas,
patterns, devices, manufacturing processes, or customer names.
Once your comment has been posted on the public FTC Web site--as
legally required by FTC Rule 4.9(b)--we cannot redact or remove your
comment from the FTC Web site, unless you submit a confidentiality
request that meets the requirements for such treatment under FTC Rule
4.9(c), and the General Counsel grants that request in accordance with
the law and the public interest. Comments containing material for which
confidential treatment is requested must be filed in paper form, must
be clearly labeled ``Confidential,'' and must comply with FTC Rule
4.9(c). In particular, the written request for confidential treatment
that accompanies the comment must include the factual and legal basis
for the request, and must identify the specific portions of the comment
to be withheld from the public record. See FTC Rule 4.9(c).
Visit the Commission Web site at http://www.ftc.gov to read this
Notice and the news release describing it. The FTC Act and other laws
that the Commission administers permit the collection of public
comments to consider and use in this proceeding as appropriate. The
Commission will consider all timely and responsive public comments that
it receives on or before May 30, 2017. You can find more information,
including routine uses permitted by the Privacy Act, in the
Commission's privacy policy, at https://www.ftc.gov/site-information/privacy-policy.

Analysis of Agreement Containing Consent Orders To Aid Public Comment

I. Introduction

The Federal Trade Commission (``Commission'') has accepted, subject
to final approval, an Agreement Containing Consent Orders (``Consent
Agreement'') from Emerson Electric Co. (``Emerson'') and Pentair plc
(``Pentair'') (collectively, the ``Respondents'') that is designed to
remedy the anticompetitive effects that would likely result from
Emerson's proposed acquisition of Pentair's valves and controls
business.
Pursuant to a Share Purchase Agreement, dated as of August 18,
2016, Emerson proposes to acquire the equity interests of certain
subsidiaries of Pentair in exchange for cash considerations of
approximately $3.15 billion (the ``Acquisition''). The proposed
Acquisition would combine the two largest suppliers of switchboxes,
which are industrial valve control products, in the United States. The
Commission's Complaint alleges that the proposed Acquisition, if
consummated, would violate Section 7 of the Clayton Act, as amended, 15
U.S.C. 18, and Section 5 of the Federal Trade Commission Act, as
amended, 15 U.S.C. 45, by substantially lessening competition in the
United States market for switchboxes.
The proposed Decision and Order (``Order'') requires Emerson to
divest Pentair's switchbox manufacturer subsidiary, Westlock Controls
Corporation (``Westlock''), to Crane Co. (``Crane'') no later than ten
days after the Acquisition is consummated. The divestiture requires
Emerson to transfer to Crane all of the facilities, personnel,
confidential information, and intellectual property associated with the
design, manufacture, and sale of Westlock's products, which will allow
Crane to effectively compete in the switchbox market.
The Commission has placed the Consent Agreement on the public
record for 30 days to solicit comments from interested persons.
Comments received during this period will become part of the public
record. After 30 days, the Commission will again review the Consent
Agreement, along with any comments received, and decide whether it
should withdraw from the Consent Agreement, modify it, or make the
Order final.

II. The Respondents

Emerson, headquartered in St. Louis, Missouri, is a diversified
global manufacturing company that provides a variety of products and
services for the industrial, commercial, and consumer markets. Through
its Automated Solutions segment, Emerson is a leading manufacturer of
industrial equipment and instrumentation, including valves, actuators,
regulators, and switchboxes, which it sells to customers in, among
others, the oil and gas, refining, chemical, and power generation
industries.
Pentair, headquartered in London, United Kingdom, with a main U.S.
office located in Minneapolis,

[[Page 20891]]

Minnesota, is a global water, fluid, thermal management, and equipment
protection company. The Pentair Valves & Controls business manufactures
valves, fittings, actuators, and controls, including switchboxes, for a
broad array of industrial markets.

III. The Relevant Markets

The relevant product market at issue in this transaction is
switchboxes. Switchboxes are devices that monitor and control isolation
(or ``on/off'') valves, which control the flow of liquids or gases
through pipes in industrial applications, including the oil and gas,
chemical, petrochemical, and power generation industries. Switchboxes
consist of a hard outer case, which often is made of explosion-proof
material, containing switches and other electrical components that
detect the position of a valve--that is, whether it is open or closed--
and communicate that position via a visual display and/or digital
signals to the facility's workers and control room. Switchboxes are
ancillary components that are typically bundled together with a valve,
an actuator (a device that physically opens and closes a valve), and
other control products into an ``automated'' isolation valve, which can
open and close automatically without manual intervention. Because
switchboxes perform a unique and essential role in the efficient and
safe operation of industrial plants and facilities, there currently are
no practical alternatives to switchboxes.
The United States is the relevant geographic market in which to
assess the competitive effects of the Acquisition. The United States
operates distinctly compared to international markets. Unlike
international markets, the domestic market relies heavily on
distributors, so competition takes place at both the distributor and
customer level. Moreover, customers in the United States have distinct
brand preferences for leading switchbox brands. Because switchboxes are
frequently used under hazardous conditions in which safety is critical,
brand reputation and product reliability are very important to
customers. As a result, U.S. customers are unlikely to turn to brands
that are not well established in the United States in response to a
small but significant non-transitory increase in price.
Pentair's ``Westlock'' and Emerson's ``TopWorx'' switchbox
businesses are the two largest suppliers of switchboxes in the United
States, with a combined market share of approximately 60%. Other than
Westlock and TopWorx, there are few suppliers with appreciable market
shares. Each of these suppliers has substantially smaller market shares
than either Westlock or TopWorx. In addition, there is a fringe of
small manufacturers with very small market shares. The switchboxes
produced by these smaller suppliers are not widely accepted by
customers in the United States. The Acquisition would substantially
increase concentration levels in the U.S. switchbox market and would
result in a highly concentrated market. Under the Horizontal Merger
Guidelines, the increase in concentration would presumptively create or
enhance market power.

IV. Effects of the Acquisition

Absent a divestiture, the proposed Acquisition would likely harm
competition in the U.S. switchbox market. Emerson and Pentair are each
other's closest competitors in this market, and customers benefit from
that competition through lower prices and increased product innovation.
TopWorx and Westlock are the most widely used and highly regarded
brands of switchboxes in the United States and, for many customers, are
the only acceptable brands of switchboxes. By eliminating competition
between Emerson and Pentair, the Acquisition likely would produce
unilateral effects in the form of higher prices and reduced innovation.

V. Entry

Entry into the U.S. market for switchboxes would not be timely,
likely, or sufficient in to deter or counteract the anticompetitive
effects of the Acquisition. The competitive strength of TopWorx and
Westlock largely reflects their brand reputation for reliability and
durability, which could not be quickly replicated by a new entrant. In
addition, customers will typically only purchase switchboxes from
approved suppliers and are reluctant to consider unproven
manufacturers. This is because customers place a premium on safety, and
product failure could cause costly and potentially dangerous disruption
to critical applications. Any new entrant would need to not only
undertake a lengthy and costly process of new product development, but
would also need to undergo rigorous vetting, testing, and approval to
become viable alternatives for many customers. Given the difficulty in
overcoming these obstacles, it is unlikely that a new entrant or
existing lower-tier competitor could effectively restore the
competition lost through this Acquisition.

VI. The Proposed Consent Agreement

The proposed Consent Agreement remedies the competitive concerns
raised by the Acquisition by requiring Emerson to divest Pentair's
Westlock subsidiary to Crane, a publicly traded manufacturer of highly
engineered industrial products, including industrial valves. The
proposed divestiture includes everything needed for Crane to compete
effectively in the U.S. market for switchboxes.
Crane, headquartered in Stamford, Connecticut, is a 162-year-old
company with a long history as a significant competitor in the U.S.
industrial valves market, providing it with the industry experience and
expertise necessary to replace the competition that would be lost due
to the Acquisition. Crane's portfolio of valves complements the
switchbox and other valve control products that Westlock manufactures,
but Crane does not sell any products that compete with Westlock. Crane
has a substantial U.S. infrastructure and customer base, including many
of the same customers as Westlock, and pre-existing relationships with
many of Westlock's distributors. Crane is thus well positioned to
acquire and integrate Westlock and maintain the benefits of competition
in this market.
Under the terms of the Order, Emerson must divest all of Westlock's
businesses and assets to Crane, including Westlock's manufacturing
facility located in Saddle Brook, New Jersey, and all of the
confidential information and intellectual property related to
Westlock's product portfolio. Emerson must also allow Crane to have
access to and hire any Westlock employees who were engaged in the
research, development, manufacturing, marketing, or sales of Westlock's
products. In order to ensure that the divestiture will succeed, the
Order requires the Respondents to enter into a one-year transitional
services agreement with Crane for certain functions that Pentair
performed for Westlock (such as accounts receivable, tax, legal,
payroll, benefits, and other related functions). In order to preserve
competition with Emerson, the Order requires Emerson to institute
procedures that protect sensitive non-public information regarding
Westlock's business from the Emerson business people in competing lines
of business. It also restricts Emerson from instituting patent
infringement suits against Crane for the Westlock switchbox product
lines that are currently being marketed or in development.
The Respondents must complete the divestiture no later than ten
days after the consummation of the Acquisition. If the Commission
determines that Crane is not an acceptable acquirer, the Order requires
the Respondents to unwind the

[[Page 20892]]

sale and accomplish a divestiture of Westlock to another Commission-
approved acquirer within 180 days of the date the Order becomes final.
Further, the Order allows the Commission to appoint a monitor to ensure
that the Respondents expeditiously comply with their obligations under
the Order and a Divestiture Trustee to accomplish the divestiture
should the Respondents fail to comply with their divestiture
obligations.

VII. Opportunity for Public Comment

The purpose of this analysis is to facilitate public comment on the
Consent Agreement to aid the Commission in determining whether it
should make the Consent Agreement final. This analysis is not intended
to constitute an official interpretation of the proposed Consent
Agreement and does not modify its terms in any way.

By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2017-08965 Filed 5-3-17; 8:45 am]
BILLING CODE 6750-01-P

Federal Register / Vol. 82, No. 85 / Thursday, May 4, 2017 / Notices 20889

STATUS: This meeting will be closed to and thereby retain shares of Woodlands FEDERAL TRADE COMMISSION
the public. Bank, Williamsport, Pennsylvania.
[File No. 161 0221; Docket No. C–4615]
ITEMS TO BE DISCUSSED: Compliance Board of Governors of the Federal Reserve
matters pursuant to 52 U.S.C. 30109. System, April 28, 2017. Emerson Electric Co. and Pentair plc;
Matters relating to internal personnel Yao-Chin Chao, Analysis To Aid Public Comment
decisions, or internal rules and Assistant Secretary of the Board.
practices. Information the premature AGENCY: Federal Trade Commission.
[FR Doc. 2017–08960 Filed 5–3–17; 8:45 am]
disclosure of which would be likely to ACTION: Proposed consent agreement.
BILLING CODE 6210–01–P
have a considerable adverse effect on
SUMMARY: The consent agreement in this
the implementation of a proposed
matter settles alleged violations of
Commission action. FEDERAL RESERVE SYSTEM federal law prohibiting unfair methods
Matters concerning participation in
of competition. The attached Analysis to
civil actions or proceedings or Formations of, Acquisitions by, and Aid Public Comment describes both the
arbitration. Mergers of Bank Holding Companies allegations in the complaint and the
* * * * * The companies listed in this notice terms of the consent orders—embodied
PERSON TO CONTACT FOR INFORMATION: have applied to the Board for approval, in the consent agreement—that would
Judith Ingram, Press Officer, Telephone: pursuant to the Bank Holding Company settle these allegations.
(202) 694–1220. Act of 1956 (12 U.S.C. 1841 et seq.) DATES: Comments must be received on
Dayna C. Brown, (BHC Act), Regulation Y (12 CFR part or before May 30, 2017.
Secretary and Clerk of the Commission.
225), and all other applicable statutes ADDRESSES: Interested parties may file a
and regulations to become a bank comment at https://
[FR Doc. 2017–09070 Filed 5–2–17; 11:15 am]
holding company and/or to acquire the ftcpublic.commentworks.com/ftc/
BILLING CODE 6715–01–P
assets or the ownership of, control of, or emersonelectricconsent online or on
the power to vote shares of a bank or paper, by following the instructions in
bank holding company and all of the the Request for Comment part of the
FEDERAL RESERVE SYSTEM banks and nonbanking companies SUPPLEMENTARY INFORMATION section
owned by the bank holding company, below. Write ‘‘In the Matter of Emerson
Change in Bank Control Notices; including the companies listed below. Electric Co. and Pentair plc, File No.
Acquisitions of Shares of a Bank or The applications listed below, as well 161 0221’’ on your comment and file
Bank Holding Company as other related filings required by the your comment online at https://
Board, are available for immediate ftcpublic.commentworks.com/ftc/
The notificants listed below have
inspection at the Federal Reserve Bank emersonelectricconsent by following the
applied under the Change in Bank
indicated. The applications will also be instructions on the web-based form. If
Control Act (12 U.S.C. 1817(j)) and
available for inspection at the offices of you prefer to file your comment on
§ 225.41 of the Board’s Regulation Y (12
the Board of Governors. Interested paper, write ‘‘In the Matter of Emerson
CFR 225.41) to acquire shares of a bank
persons may express their views in Electric Co. and Pentair plc, File No.
or bank holding company. The factors
writing on the standards enumerated in 161 0221’’ on your comment and on the
that are considered in acting on the
the BHC Act (12 U.S.C. 1842(c)). If the envelope, and mail your comment to the
notices are set forth in paragraph 7 of
proposal also involves the acquisition of following address: Federal Trade
the Act (12 U.S.C. 1817(j)(7)).
a nonbanking company, the review also Commission, Office of the Secretary,
The notices are available for
includes whether the acquisition of the 600 Pennsylvania Avenue NW., Suite
immediate inspection at the Federal
nonbanking company complies with the CC–5610 (Annex D), Washington, DC
Reserve Bank indicated. The notices
standards in section 4 of the BHC Act 20580, or deliver your comment to the
also will be available for inspection at
(12 U.S.C. 1843). Unless otherwise following address: Federal Trade
the offices of the Board of Governors.
noted, nonbanking activities will be Commission, Office of the Secretary,
Interested persons may express their
conducted throughout the United States. Constitution Center, 400 7th Street SW.,
views in writing to the Reserve Bank
Unless otherwise noted, comments 5th Floor, Suite 5610 (Annex D),
indicated for that notice or to the offices
regarding each of these applications Washington, DC 20024.
of the Board of Governors. Comments
must be received at the Reserve Bank FOR FURTHER INFORMATION CONTACT:
must be received not later than May 18,
indicated or the offices of the Board of Jonathan Platt (212–607–2819) or Ryan
2017.
Governors not later than May 30, 2017. Harsch (212–607–2805), FTC, Northeast
A. Federal Reserve Bank of A. Federal Reserve Bank of St. Louis
Philadelphia (William Spaniel, Senior Region, One Bowling Green, Suite 318,
(David L. Hubbard, Senior Manager) New York, NY 10004.
Vice President) 100 North 6th Street, P.O. Box 442, St. Louis, Missouri
Philadelphia, Pennsylvania 19105– 63166–2034. Comments can also be sent SUPPLEMENTARY INFORMATION: Pursuant
1521. Comments can also be sent electronically to to Section 6(f) of the Federal Trade
electronically to Comments.applications@stls.frb.org: Commission Act, 15 U.S.C. 46(f), and
Comments.applications@phil.frb.org: 1. Home Bancshares, Inc., Conway, FTC Rule 2.34, 16 CFR 2.34, notice is
1. Firetree, Ltd., Williamsport, Arkansas; to acquire 100 percent of hereby given that the above-captioned
Pennsylvania, individually and as part Stonegate Bank, Pompano Beach, consent agreement containing consent
pmangrum on DSK3GDR082PROD with NOTICES

of a group acting in concert with Florida. order to cease and desist, having been
Firetree, Ltd., William Brown, Muncy, filed with and accepted, subject to final
Pennsylvania; Donna Spitler, and Board of Governors of the Federal Reserve approval, by the Commission, has been
Thomas Spitler, both of Wooster, Ohio; System, April 28, 2017. placed on the public record for a period
and Perter Went, Jersey City, New Yao-Chin Chao, of thirty (30) days. The following
Jersey; to retain voting shares of Assistant Secretary of the Board. Analysis to Aid Public Comment
Woodlands Financial Services [FR Doc. 2017–08959 Filed 5–3–17; 8:45 am] describes the terms of the consent
Company, Williamsport, Pennsylvania, BILLING CODE 6210–01–P agreement, and the allegations in the

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20892 Federal Register / Vol. 82, No. 85 / Thursday, May 4, 2017 / Notices

sale and accomplish a divestiture of FOR FURTHER INFORMATION CONTACT: primary care setting. This gap in the
Westlock to another Commission- Doris Lefkowitz, AHRQ Reports literature is becoming more pronounced
approved acquirer within 180 days of Clearance Officer, (301) 427–1477, or by as primary care is increasingly serving
the date the Order becomes final. email at doris.lefkowitz@AHRQ.hhs.gov. as the key integrator across the health
Further, the Order allows the SUPPLEMENTARY INFORMATION: system as part of payment and delivery
Commission to appoint a monitor to system reforms. This research project
ensure that the Respondents Proposed Project aims to address the important and
expeditiously comply with their The Re-Engineered Visit for Primary unfulfilled need to improve patient
obligations under the Order and a Care (AHRQ REV) safety and reduce avoidable
Divestiture Trustee to accomplish the readmissions within the primary care
In accordance with the Paperwork
divestiture should the Respondents fail context.
to comply with their divestiture Reduction Act, 44 U.S.C. 3501–3521, AHRQ’s goals in supporting this 30-
obligations. AHRQ invites the public to comment on month project are to build on the
this proposed information collection. knowledge base from the inpatient
VII. Opportunity for Public Comment This project, The Re-engineered Visit for settings, add to the expanding evidence
The purpose of this analysis is to Primary Care (AHRQ REV), directly base on preventing readmissions by
facilitate public comment on the addresses the agency’s goal to conduct focusing on the primary care setting,
Consent Agreement to aid the research to enhance the quality of health and provide insight on the components
Commission in determining whether it care and reduce avoidable readmissions, and themes that should be part of a re-
should make the Consent Agreement which are a major indicator of poor engineered visit in primary care. This
final. This analysis is not intended to quality and patient safety. work will ultimately inform an effective
constitute an official interpretation of Research from AHRQ’s Healthcare
intervention that can be tested in a
the proposed Consent Agreement and Cost and Utilization Project (HCUP)
diverse set of primary care clinics.
does not modify its terms in any way. indicates that in 2011 there were To meet AHRQ’s goals and objectives,
approximately 3.3 million adult hospital the agency awarded a task order to John
By direction of the Commission.
readmissions in the United States. Snow, Inc. (JSI) to conduct qualitative
Donald S. Clark, Adults covered by Medicare have the
Secretary. research using quality improvement to
highest readmission rate (17.2 per 100 investigate the primary care-based
[FR Doc. 2017–08965 Filed 5–3–17; 8:45 am] admissions), followed by adults covered transitional care workflow from the
BILLING CODE 6750–01–P by Medicaid (14.6 per 100 admissions) primary care staff, patient, and
and privately insured adults (8.7 per community agency perspective.
100 admissions). High rates of This research has the following goals:
DEPARTMENT OF HEALTH AND readmissions are a major patient safety 1. Analyze current processes in the
HUMAN SERVICES problem and are associated with a range primary care visit associated with
of adverse events, such as prescribing hospital discharge; and
Agency for Healthcare Research and errors and misdiagnoses of conditions in 2. Identify components of the re-
Quality the hospital and ambulatory care engineered visit.
settings. Collectively these readmissions This study is being conducted by
Agency Information Collection
are associated with $41.3 billion in AHRQ through its contractor pursuant
Activities: Proposed Collection;
annual hospital costs, many of which to AHRQ’s statutory authority to
Comment Request
potentially could be avoided. conduct and support research on health
AGENCY: Agency for Healthcare Research In recent years, payer and provider care and on systems for the delivery of
and Quality, HHS. efforts to reduce readmissions have such care, including activities with
ACTION: Notice. proliferated. Many of these national respect to the quality, effectiveness,
programs have been informed or guided efficiency, appropriateness and vale of
SUMMARY: This notice announces the by evidence-based research, toolkits and health care services and with respect to
intention of the Agency for Healthcare guides, such as AHRQ’s RED (Re- quality measurement and improvement.
Research and Quality (AHRQ) to request Engineered Discharge), STAAR (STate 42 U.S.C 299a(a)(1) and (2).
that the Office of Management and Action on Avoidable Readmission),
Budget (OMB) approve the proposed AHRQ’s Project BOOST (Better Method of Collection
information collection project ‘‘The Re- Outcomes by Optimizing Safe To analyze current processes in the
engineered Visit for Primary Care Transitions), the Hospital Guide to primary care visit associated with
(AHRQ REV).’’ This proposed Reducing Medicaid Readmissions, and hospital discharge, the data collection is
information collection was previously Eric Coleman’s Care Transitions separated into seven smaller data
published in the Federal Register on Intervention. These efforts have largely collection activities to minimize
February 13, 2017 and allowed 60 days focused on enhancing practices research participant burden while still
for public comment. AHRQ received occurring within the hospital setting, allowing for the collection of necessary
one comment from the public. The including the discharge process data. Each of these tasks will be
purpose of this notice is to allow an transitions among providers and conducted at nine primary care sites:
additional 30 days for public comment. between settings of care. While many of 1. Primary care site organizational
DATES: Comments on this notice must be these efforts have recognized the critical characteristics survey: The purpose of
pmangrum on DSK3GDR082PROD with NOTICES

received by June 5, 2017. role of primary care in managing care this background information on the
ADDRESSES: Written comments should transitions, they have not had an primary care site’s organizational
be submitted to: AHRQ’s OMB Desk explicit focus on enhancing primary characteristics is to offer context for the
Officer by fax at (202) 395–6974 care with the aim of reducing avoidable work flow mapping. It will help make
(attention: AHRQ’s desk officer) or by readmissions. the work flow mapping process more
email at OIRA_submission@ Evidence-based guidance to reduce efficient and reduce burden by only
omb.eop.gov (attention: AHRQ’s desk readmissions and improve patient safety requesting information that is already
officer). are comparatively lacking for the known by each site contact. One person

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Document Created: 2017-05-04 01:48:55
Document Modified: 2017-05-04 01:48:55

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Proposed consent agreement.
Dates		Comments must be received on or before May 30, 2017.
Contact		Jonathan Platt (212-607-2819) or Ryan Harsch (212-607-2805), FTC, Northeast Region, One Bowling Green, Suite 318, New York, NY 10004.
FR Citation		82 FR 20889