Even acquisitions associated with financially distressed healthcare entities are at risk of violating antitrust laws. The acquisition of a hospital that had consistently experienced losses prior to the acquisition by ProMedica Health System was ordered to be unwound. In this case, the court found that the acquired hospital had somewhat improved financials prior to the acquisition and was, therefore, essentially not distressed enough.
The chair of the FTC has said that antitrust enforcement in the healthcare area is one of the agency’s top priorities. Analyzing potential antitrust issues early in the deal process can help minimize the risk that days, months, weeks or even years later a transaction will need to be unwound. Antitrust laws are very complex, and an analysis depends heavily on the facts and circumstances of a particular situation. Therefore, it is essential when contemplating, or entering into, a merger that an antitrust analysis be performed by qualified legal counsel.
Steven M. Harris, Esq., is a nationally recognized healthcare attorney and a member of the law firm, McDonald Hopkins LLC. Contact him via e-mail at [email protected].
