The health care industry has been a particular focus of antitrust concerns in recent years, with recent Policy Initiatives, Private Equity Warningand Enforcement Actions A new Task Force on Healthcare Monopolies and Collusion (HCMC) from both the Department of Justice (DOJ) and the Federal Trade Commission (FTC) The Justice Department announced this monthThis is the latest example of antitrust scrutiny of the industry.
As with other recent task forces from the Department of Justice’s Antitrust Division, Procurement Complaint Countermeasures Unit (PCSF)HCMC will bring together government enforcement officials to share expertise and coordinate investigations and actions. But reflecting the agency’s interest in the complex and evolving nature of the health care industry, HCMC will also include policy and industry experts, economists, data scientists, and more. DOJ’s announcement indicated a focus on the vertical integration of payers, providers, and data. Executives, investors, and lawyers should expect an increase in criminal and civil antitrust enforcement activity targeting all aspects of the health care industry.
Execution
If PCSF is any example, HCMC will likely mean a further increase in antitrust investigations and enforcement actions in the healthcare industry, which is already at an all-time high. By comparison, the Department of Justice boasts that PCSF has already launched more than 100 investigations and obtained more than 50 guilty pleas and convictions in its first five years.
Of note, the Ho Chi Minh City announcement includes new web page The Antitrust Division’s public reporting site contains public explanations of potential antitrust harms and prominently features both a hotline and a complaint portal. The outcome of this attempt to encourage consumers to come forward remains to be seen, as many of the supposed violations would require inside information or the assistance of legal counsel to understand or detect.
policy
In addition to strengthening enforcement efforts, the Task Force will guide the Antitrust Division’s policy and overall strategy and facilitate “policy advocacy.” The inclusion of a policy focus that differs from the PCSF’s goals is not surprising given the Division’s preference for more aggressive antitrust policy, as well as the Department’s actions. Retraction of major health policy statements The effects of the policy may take longer to be seen, but they could shape the future of the industry.
Why is this important?
The Department of Justice and the FTC continue to aggressively review health care transactions. New Merger GuidelinesGoing forward, there will likely be increased scrutiny of business practices that may result in civil and criminal liability under the Sherman and Clayton Acts. Practices and evolving adjustment methods currently common in the healthcare and medical technology industries may invite greater scrutiny.
