Antitrust Enforcement
Oregon Law to Enhance Oversight of Healthcare Mergers & Acquisitions Faces Legal Challenge
Amy Y. Gu, Managing Editor November 15, 2023
In recent years, increased scrutiny over the impacts of consolidation in the healthcare industry has driven both antitrust enforcers and policymakers at the federal and state levels to enhance their efforts to address and remedy the source of the issue by improving oversight and review of potential anticompetitive healthcare mergers and acquisitions, both before and after the transaction. As the federal agencies review and revise their merger review guidelines and reporting requirements, several states have also introduced legislation to enhance their review and oversight authority of healthcare transactions in their …
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Recapping the 2023 California Legislative Session (Part 1): Regulating Market Competition and Health System Reforms
Dilani Logan, Student Fellow November 13, 2023
On September 14, the California Legislature concluded the 2023 legislative session when it adjourned for an interim recess. The session marked the end of the first year of the two-year 2023-2024 term. In total, the Legislature introduced over 3,000 bills this session – more bills than it has introduced in more than a decade; of which, 700 bills remain active. Like past sessions, the California Legislative Beat recaps the noteworthy bills from this session that impact California’s health care market in a two-part series. In this Part 1 of our …
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The Source and Petris Center Submits Comments in Support of Federal Draft Merger Guidelines
Amy Y. Gu, Managing Editor September 18, 2023
On September 18, The Source on Healthcare Price and Competition, together with UC Berkeley’s Petris Center, submitted public comments on the Federal Draft Merger Guidelines published on July 19. Jointly released by the Federal Trade Commission (FTC) and Department of Justice (DOJ), the draft guidelines proposed new considerations and guidance in the antitrust review of mergers and acquisitions, taking into account new developments and market realities in recent years. These new guidelines would replace the horizontal merger guidelines of 2010 and vertical merger guidelines of 2020 which have been withdrawn by …
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California District Court’s Exclusion of Evidence under Scrutiny as Ninth Circuit Hears Oral Arguments in the Appeal of Sidibe v. Sutter Health Class Action
Amy Y. Gu, Managing Editor September 15, 2023
See case page: Sidibe v. Sutter Health On August 24, the 9th Circuit Court of Appeals heard oral arguments in the appeal of the federal class action Sidibe v. Sutter Health. A jury verdict in March 2022 in the Northern District Court of California had cleared the hospital giant of anticompetitive allegations that were initially filed over a decade ago. The alleged practices were also at issue in the case filed in state court by a labor union that was later joined by the attorney general, UEBT v. Sutter Health. …
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The Source Roundup: September 2023 Edition
Mary Mitchell, Student Fellow September 1, 2023
Our roundup of studies and reports for this month focuses on healthcare costs and consolidation, including a paper written by The Source teama examining state action to regulate healthcare mergers and acquisitions. We also share two studies relating to impacts of consolidation and acquisition; one compares post-surgery outcomes in high and low concentration markets, and the other takes a broad view of costs and quality at acquired hospitals. Next, a systemic review analyzes trends and impacts of private equity acquisition and a study compares hospital prices paid between Medicare Advantage …
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Just Published: Research Report on State-imposed Conditions on Healthcare Provider Transactions
Amy Y. Gu, Managing Editor August 16, 2023
In a new research paper published in Frontiers in Public Health Volume 11, The Source’s Alex Montague, Robin Davison, Katie Gudiksen, and Jaime King examine the use of conditional approvals by state officials on hospital and health system mergers, acquisitions, and other consolidating transactions. While federal antitrust enforcers play an important role in overseeing large mergers, acquisitions, and other consolidating transactions of major healthcare providers, state oversight over healthcare markets is essential to slow consolidation more broadly and address market failures across the country. One method states have used to address …
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The Source Roundup: August 2023 Edition
Mary Mitchell, Student Fellow August 1, 2023
This month’s roundup of studies and reports highlights growing consolidation in health care as well as increasing costs of care. One report predicts higher medical costs in 2024—a trend that continued from the last two years. Another report highlights that policy efforts to reduce facility fees charged by hospitals are a potential avenue for controlling costs. Global capitation, in particular one value-based model utilized in Maryland, may help reduce the cost of specialty care delivery. Meanwhile, trends in the size of physician practices and recent M&A activity are indicators of …
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BREAKING: New Federal Draft Merger Guidelines Announced
Amy Y. Gu, Managing Editor July 19, 2023
On July 19, the Federal Trade Commission (FTC) and Department of Justice (DOJ) jointly released updated draft guidelines for their antitrust review of mergers and acquisitions. The new proposed guidelines were established following public comments solicited from the past 18 months and aim to better evaluate business and competition in the modern economy and current market realities. The draft guidelines provide 13 principles the agencies will use in determining whether a transaction is anticompetitive and take into consideration increasing concern over new forms of consolidation including vertical mergers, cross-market mergers, …
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FTC/DOJ Propose Expanded Pre-Transaction Reporting Requirements
Amy Y. Gu, Managing Editor July 17, 2023
On June 27, the Federal Trade Commission (FTC), joined by the Department of Justice (DOJ), announced its proposal to amend pre-merger reporting rules that implement the Hart-Scott-Rodino (HSR) Act of 1976. The new rules would require entities seeking to merge to provide more information and details on their transaction. This latest move by the federal antitrust enforcement agencies is consistent with ongoing efforts to promote competition in the U.S. and may act to slow down consolidation trends in the healthcare industry. What is the Existing Reporting Process The original …
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The Source Roundup: July 2023 Edition
Mary Mitchell, Student Fellow July 3, 2023
Summer is here, and we hope you can enjoy some vacation time. Whether you’re at work or on the beach, our July roundup brings you the highlights of recent healthcare pricing and competition studies and reports. First, we share several articles that discuss the potential for anticompetitive impacts from consolidation through collaborative agreements and cross-market mergers, two types of lesser-examined transactions that more easily escape regulatory scrutiny. Next, we share an American Hospital Association fact sheet that spotlights insurer policies and acquisitions as under recognized contributors to the changing landscape …
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