In a Modern Healthcare article, litigation & enforcement partner Jane Willis commented on the Federal Trade Commission’s successful bid to block a healthcare company’s acquisition of five hospitals. The consolidation of the major industry players would have reduced competition in the healthcare market, leading to higher costs for consumers.
This was the third hospital merger this year to be successfully blocked by the FTC. “These (outcomes) have emboldened the FTC,” Jane said. “Parties who were contemplating affiliations have to take into account the risk of an FTC challenge more than they had in the past. There is a deterrent effect that they are trying to cause.”
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