DOJ, HHS, And FTC Request Public Comment On Effects Of Private Equity Transactions On Healthcare Providers – M&A/Private Equity

Three federal agencies – the Department of Justice’s
Antitrust Division (DOJ), the Federal Trade Commission (FTC), and
the Department of Health and Human Services (HHS) – have
requested public input on the effects of transactions involving
healthcare providers conducted by private equity funds or other
alternative asset managers, health systems, or private payers.
Comments are to be submitted by May 6, 2024, to regulations.gov.

The agencies expressed concerns that such transactions generate
profits for private equity firms at the expense of patients’
health, workers’ safety, and affordable healthcare for patients
and taxpayers. The HHS noted, “Comments submitted in response to
the joint request will inform the agencies’ enforcement
priorities and future action, including potential regulations aimed
at promoting and protecting competition in health care markets and
ensuring appropriate access to quality, affordable health care
items and services.”

The request for public comments specifically asks for
information on transactions that fall under the current thresholds
for government reporting. Under current laws, mergers valued over
$119.5 million need to be disclosed to the DOJ or FTC, and the
parties must then wait at least 30 days before closing. This
provides notice to the government of the transaction and allows the
government to intervene if the transaction appears to have
anticompetitive effects. Transactions under the threshold,
generally have not been subject to the same notice requirements,
though that could soon change depending on the public comments to
this joint request.

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