FTC, DOJ and HHS Launch Cross-Government Investigation Into Healthcare Competition

The Federal Trade Commission, Department of Justice’s Antitrust Division, and U.S. Department of Health and Human Services jointly issued a Request for Information requesting public comment on transactions in the healthcare space.  According to the agencies, there is increasing concern that private equity firms and other corporate owners are increasingly involved in healthcare transactions leading to greater consolidation, poorer quality of care, and less access to affordable healthcare.

According to FTC Chair Lina M. Khan, “FTC will continue scrutinizing private equity roll-ups, strip-and-flip tactics, and other financial plays that can enrich executives but leave the American public worse off.”  Assistant Attorney General of DOJ’s Antitrust Division, Jonathan Kanter, noted that the “RFI will enable the agencies to accurately understand the modern market realities of the health care industry and forcefully enforce the law against unlawful deals.”

According to the press release, public comments will inform the agencies’ enforcement priorities and future action, including new regulations and increased enforcement.  Market participants have until May 6, 2024 to submit their comments.

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