Becker's Healthcare June 20, 2024
Winston-Salem, N.C.-based Novant Health scrapped its planned acquisition of two hospitals from Franklin, Tenn.-based Community Health Systems after an appellate court granted the Federal Trade Commission an emergency injunction blocking the deal.
The decision is a significant win for the FTC, which has ramped up antitrust enforcement against healthcare mergers and acquisitions over the last three years under Chair Lina Khan‘s leadership.
In December, the FTC and Justice Department updated their merger guidelines, which outline the factors and frameworks used to review proposed transactions. Under the guidelines, health systems are not allowed to merge if doing so prevents a potential competitor from entering the market or reduces incentives to pay higher wages. The guidelines could also be used to...