Antitrust agencies signal increased scrutiny of serial acquisitions and for-profit healthcare | Viewpoint
Chief Healthcare Executive October 6, 2024
Healthcare organizations and investors should be aware of this environment and consider strategies to mitigate exposure.
In recent months, the U.S. Department of Justice, Antitrust Division and the Federal Trade Commission have repeatedly signaled their concern regarding recent impacts of consolidation in markets.
In their May 23, 2024 press release discussing serial acquisitions and roll-up strategies, they focused on:
- Healthcare transactions involving for-profit (e.g., private equity) entities, and;
- Serial acquisition (or roll-up) strategies that, in the agencies’ view, can allow acquirers to amass “significant control over key products, services, or labor markets without government scrutiny.”
Healthcare organizations and corporate owners/investors in health care should be aware of this challenging environment and consider strategies to mitigate exposure to direct...