How physician practices can prepare for antitrust reviews before a transaction

The National Law Review outlined several antitrust enforcement-related challenges for physician practice transactions.

Four insights into their findings:

1. Planning for antitrust enforcement should be a part of any potential acquisition. Healthcare providers must consider the structure and size of the transaction, along with state reporting requirements.

2. For example, the Washington Attorney General challenged a recent acquisition based on its structure and succeeded. If the acquisition closed, a physician practice would have been allowed to exist and continue to practice uninterrupted while under new ownership.

3. The AG challenged the transaction format — a professional services agreement in connection with the sale of practice assets. The AG argued that the format of the deal ensured the parties remained competitors under antitrust laws and had unlawful payer arrangements.

4. The National Law Review said that parties involved in a potential transaction should be able to explain how the transaction will increase access to care, increase care quality or lower costs.

Read the entire article here.

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