Antitrust Enforcement
AB 2080: A Statutory Solution to Addressing Anticompetitive Transaction & Behavior in the Healthcare Market
Enne Mae Guerrero, Graduate Research Fellow May 16, 2022
Consistent research has shown that consolidation in the health industry leads to an increase in healthcare costs without improved quality of care. Though many healthcare mergers have previously gone unchecked, antitrust enforcers are increasingly using their statutory and regulatory authority and the court system to address healthcare consolidation concerns.[1] In California, the attorney general has had the statutory authority to review non-profit hospital mergers for decades but the limited oversight does not extend over all anticompetitive transactions and behavior. This session, the legislature introduced AB 2080 aimed to broaden existing …
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FTC Successfully Blocks Hackensack Meridian Merger with Big Win in 3rd Circuit Appeal
Amy Y. Gu, Managing Editor April 15, 2022
In the latest healthcare antitrust action, Hackensack Meridian and Englewood Healthcare officially terminated their merger plans after the Third Circuit Court of Appeals handed down a big win for federal regulators in the merger challenge. Last month, after multiple amicus briefs filed by various stakeholders in the appeals court, a three-judge panel affirmed the lower court’s preliminary injunction to block the merger, holding that the Federal Trade Commission (FTC) established a prima facie case showing that the proposed merger is likely to substantially lessen competition and that the hospitals’ procompetitive …
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The Source Roundup: April 2022 Edition
Hannah Park, Student Fellow April 1, 2022
This month, we are pleased to highlight new publications co-authored by The Source-affiliated health policy researchers and scholars, discussing 1) the potential benefits of all-payer hospital global budgets, and 2) the legal viability and policy effects of state public option health plans. Additionally, we examine articles covering research on 3) hospital service offerings based on ownership type, 4) the correlation between hospital prices and patient outcomes, 5) data sources within California’s physician practice landscape, and 6) the labor market impact of hospital mergers. Healthcare Reform and Cost Containment High …
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BREAKING: Sutter Wins After Federal Jury Trial in Sidibe Class Action
Amy Y. Gu, Managing Editor March 11, 2022
See case page: Sidibe v. Sutter Health After nearly ten years of litigation and a month-long trial in Sidibe v. Sutter Health in the federal district court in San Francisco, a nine-person jury delivered a unanimous verdict finding that Sutter Health did not engage in anticompetitive conduct and did not cause consumers to pay higher prices or premiums as alleged by the class plaintiffs. The jury answered no on two key questions to plaintiffs’ case, that 1) Sutter Health did not use tying practices in its insurer contracts; and 2) …
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[Sutter Case Watch] Jury Trial in Federal Class Action Against Sutter Health Provides Sneak Peek at Alleged Anticompetitive Contracting Practices
Amy Y. Gu, Managing Editor March 4, 2022
See case page: Sidibe v. Sutter Health Northern California hospital giant Sutter Health is again in the spotlight this month as the jury trial began in Sidibe v. Sutter Health in the District Court for the Northern District of California after nearly ten years of litigation. Many may recall the recent antitrust lawsuit led by California attorney general against Sutter Health, UFCW & Employers Benefit Trust (UEBT) v. Sutter Health, which settled in state court on the eve of trial in October 2019. While the settlement sent shockwaves across the …
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The Source Roundup: March 2022 Edition
Hannah Park, Student Fellow March 1, 2022
This month’s Roundup includes articles on healthcare merger review, specifically new policy recommendations that explain 1) why regressing price on the HHI does not inform merger analysis, and 2) how courts can implement health equity concerns in merger review. Next, we examine articles that evaluate potential strategies to reduce healthcare costs, including 3) state initiatives that build on past improvement efforts, and 4) financial incentives to reward patients for choosing lower-priced providers. Finally, we look at 5) trends in outpatient telehealth use since the start of the pandemic, and 6) …
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BREAKING: DOJ Files Lawsuit to Block United-Change Healthcare Merger
Amy Y. Gu, Managing Editor February 24, 2022
After months of speculation and opposition from industry groups, the Department of Justice (DOJ), along with attorneys general of New York and Minnesota, filed a lawsuit in federal court in the District of Columbia to block the merger of UnitedHealth and Change Healthcare, just days ahead of the February 27 deadline set for the deal to close. According to the DOJ announcement released on February 24, the lawsuit alleges the proposed $13 billion deal would not only harm competition in commercial health insurance markets, but also the market for technology …
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Lifespan-Care New England Merger Hits Roadblock as Rhode Island AG Joins FTC Challenge
Amy Y. Gu, Managing Editor February 23, 2022
Updated February 23, 2022: The entities withdrew their application and abandoned the proposed merger in the face of federal and state antitrust challenge. A temporary restraining order was granted on February 18 halting merger proceedings pending court ruling on the request for preliminary injunction. Rhode Island’s two largest nonprofit hospital systems, Lifespan and Care New England, will face a challenging road ahead to their proposed merger. On February 17, the Federal Trade Commission (FTC) voted to file a lawsuit to block the proposed merger in court. Separately, Rhode Island Attorney …
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Private Enforcement Cases Highlight Consolidation and Anticompetitive Practices in Healthcare Industry
Amy Y. Gu, Managing Editor February 14, 2022
As federal and state agencies ramp up enforcement in healthcare antitrust following the Biden executive order calling for revamped competition in the industry, private entities are also increasingly joining in the action. In this month’s Litigation and Enforcement Highlights, we take a look at a pair of recent private antitrust cases that allege anticompetitive conduct of large hospital systems. Saint Francis Hospital v. Hartford HealthCare (Connecticut) Last month, Hartford HealthCare in Connecticut was hit with an antitrust lawsuit filed in federal court by competitor Saint Francis Hospital, alleging that …
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The Source Roundup: January 2022 Edition
Hannah Park, Student Fellow January 3, 2022
Happy New Year! In this inaugural issue of 2022, we roundup articles and reports that you may have missed from the year end that examine various healthcare price and competition issues, including 1) an observational study on states’ merger review powers and their effect and 2) a review of policy options for addressing the extent and impact of consolidation in California. In addition, we cover articles that examine 3) the correlation between prices disclosed under the new hospital price regulation with total costs of care among commercially insured individuals, 4) …
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