A Health Payer Specialist article reported on a recent lawsuit from the US Federal Trade Commission (FTC) against an anesthesia group and its private equity founder for allegedly enacting an anticompetitive scheme to gain market power through a series of roll-up acquisitions.
In citing a related Morgan Lewis LawFlash analysis of the case, the Health Payer Specialist notes that the authors, partners Ryan Kantor and Zachary Johns, question whether the “FTC novel roll-up theory will survive judicial scrutiny.”
Further, the lawyers note that since any decision in the case will be subject to review by the US Court of Appeals for the Fifth Circuit, which is known to be “adverse to aggressive agency action”—including litigation from the FTC, a win by the agency would likely be overturned.
That does not mean private equity firms, providers, and payers can rest easy, the lawyers write. “It is clear that healthcare acquisitions, including those by private equity firms, will be subject to increased scrutiny by regulators regardless of the size or structure of the transactions.”
They note, “The FTC’s complaint is likely just the beginning.”
Read the full Health Payer Specialist article >>
Subscription may be required.