The Biden administration has been keen to take on corporate consolidation, appointing a new generation of antitrust officials to the Department of Justice, the Federal Trade Commission and the White House that has promised to pay closer attention to private equity deals. One area of focus is healthcare. The DOJ has recently indicated a particular focus on rollup transactions that consolidate market share and, with it, negotiating power. Payers and providers have been merging for years spurring concerns about price gouging. The FTC’s own study has found that several recent hospital mergers have resulted in significant price hikes and reduced quality care. Regulators might target areas where the patient population is especially vulnerable, such as nursing homes, explained Arman Oruc, co-chair of the Antitrust & Competition practice to FierceHealthcare. Though there haven’t been any enforcement actions that he has seen so far, Oruc says parties need to be prepared to answer a lot of questions.
In The Press October 21, 2022