Litigation & Enforcement Highlights
North Carolina Attorney General Files Suit Against HCA Subsequent to 2018 Hospital Purchase
Bruce Allain, Managing Editor January 16, 2024
On December 14, 2023, the North Carolina Attorney General (AG) filed suit against HCA Healthcare, Inc. alleging that HCA violated the Asset Purchase Agreement (APA) it signed when it acquired Mission Health System. HCA is the largest for-profit hospital chain in the United States and in 2018, it acquired Mission Health System, which serves western North Carolina. At the time of the merger, the North Carolina AG required the signing of an APA that included assurances that HCA was committed to continuing certain critical services (including emergency, trauma care, and …
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United Health Subsidiary Optum Sued for Anticompetitive Practices in Federal Lawsuit
Bruce Allain, Managing Editor December 15, 2023
Research indicates that concentrating control of healthcare providers and facilities into a handful of massive health systems leads to higher healthcare costs, without improving quality of care. There are often limited possibilities available for smaller marketplace participants who are attempting to compete with the giants in the field, especially when the giants engage in unfair business practices. On November 20, 2023, Emanate Health filed an antitrust with the US District Court for the Central District of California. The complaint alleges that Optum engaged in unfair and unlawful business practices and …
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FTC and California AG Jointly Challenge John Muir’s Acquisition of San Ramon Regional Medical from Tenet Healthcare
Amy Y. Gu, Managing Editor December 7, 2023
See case page: FTC and California v. John Muir Health and Tenet Healthcare Update: On December 15, 2023, John Muir announced it would terminate its proposed deal to acquire Tenet’s remaining interest in San Ramon Medical Center. On December 18th, the FTC and California moved to dismiss their federal court case and the FTC dismissed its administrative challenge. Federal antitrust enforcement continues to pick up pace even as we near the year end. On November 17, the Federal Trade Commission sued to block John Muir Health’s proposed $142.5 million …
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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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FTC Targets Private Equity Acquisitions in Latest Lawsuit Against Texas Anesthesiology Practice
Amy Y. Gu, Managing Editor October 16, 2023
Private equity investment in health care across the country has continued to garner the attention of health policy researchers and policymakers in recent years. Stakeholders are concerned that private equity ownership of physician practices prioritizes profit over patient care quality. Despite concerns of potential impacts on price and quality arising from these private equity transactions in the health care industry, few enforcement actions have occurred. Last month, the Federal Trade Commission (FTC) took the lead in challenging one of these arrangements, suing a private equity firm retroactively in federal court …
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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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[Case Brief] AAEM-PG v. Envision Healthcare: Corporate Practice of Medicine Challenges Private Equity Acquisition in Health Care
Mary Mitchell, Student Fellow August 15, 2023
As private equity (PE) investment in healthcare draws scrutiny from advocates and regulators, one lawsuit has been in the spotlight as a potentially important precedent-setter, particularly regarding its corporate practice of medicine (CPOM) claims: American Academy of Emergency Medicine Physician Group (AAEM-PG) v. Envision Healthcare. The Independent Emergency Physicians Consortium called this case a “momentous event” that could signal an inflection point in the increasing corporatization of medicine.[1] However, proceedings have been on pause since May 2023, when the defendant filed for bankruptcy, and it is unclear if and when …
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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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