The Increasing Scrutiny of Healthcare Transactions

Antitrust attorneys Bill Katz and Anna Hayes co-authored an article with healthcare attorney Eric Scalzo for the August 2024 edition of The Governance Institute's BoardRoom Press journal. The article explores the increasing scrutiny of mergers and acquisitions (M&A) in the healthcare industry, particularly deals involving private equity investors, at both the state and federal level. The authors note factors including rising costs, narrow hospital margins and less government funding have fueled the rise in consolidations, especially among hospitals and health systems. In response, the Federal Trade Commission (FTC) and U.S. Department of Justice's (DOJ) Antitrust Division released updated Merger Guidelines expanding the number of transactions subject to antitrust challenges and applying stricter standards to proposed mergers involving hospitals, insurers and other healthcare providers. The authors call out provisions such as the presumption of harm and considerations of future market entrants that are relevant for these deals and should be noted by counsel. In addition, the article describes the FTC and DOJ's collaboration with the U.S. Department of Health and Human Services (HHS) to examine the role of private equity in the healthcare sector. Together, these developments mean potential deal participants can expect heightened scrutiny from the government and should prepare to address anticompetitive concerns from the outset to ensure a smooth transaction amid an evolving regulatory landscape.

READ: The Increasing Scrutiny of Healthcare Transactions (Subscription required)