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October 6, 2024 - Article

Antitrust agencies signal increased scrutiny of serial acquisitions and for-profit healthcare

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The article discusses the growing concern within the U.S. Department of Justice, Antitrust Division and the Federal Trade Commission regarding the recent impacts of healthcare consolidation. In a May press release, the agencies signaled their concern regarding for-profit (e.g., private equity) and serial acquisition (e.g., roll-up) strategies that could allow healthcare organizations and corporate owners/investor to amass “significant control over key products, services, or labor markets without government scrutiny.” The authors write that “[H]ealthcare organizations (both nonprofit and for-profit) and investors should be aware of the ongoing attention on transactions by the federal government, and the federal agencies’ increasing interest in expanding scrutiny of transactions that previously may have flown under the radar. Particular attention should be paid to governance and control over subsidiary and portfolio companies.” Read the article.