Healthcare M&A faces tighter review as FTC retains guidelines

Editor’s Note

In a setback for healthcare mergers, The Federal Trade Commission (FTC) will continue enforcing strict antitrust guidelines established under the Biden administration, Healthcare Dive reported 2019. Bucking expectations of a more lenient approach under the new administration, FTC Chair Andrew Ferguson confirmed the decision, saying he wished to clarify the review process amid a surge in premerger filings triggered by new submission requirements.

The guidelines, finalized in 2023, set a higher bar for merger reviews, Healthcare Dive reports. They specifically target vertical and cross-market deals, including private equity roll-ups and insurer acquisitions of physician practices.

As detailed in the article, these guidelines have been widely opposed by the private sector due to their aggressive stance on combating consolidation. While non-binding, they serve as an influential roadmap for regulators and a reference point for courts evaluating merger legality. Ferguson emphasized the importance of maintaining consistency across administrations to avoid undermining the guidelines’ credibility with businesses and the judiciary. He also noted that any future revisions would be considered cautiously and transparently.

Ferguson’s decision reflects a departure from the broader Trump administration’s strategy of reducing federal oversight, Healthcare Dive reports. It also signals continuity with former FTC Chair Lina Khan’s approach, which faced criticism from Republicans for its vigorous antitrust enforcement.

The article offers further commentary from Ferguson on the potential for revisions as well as recent moves by President Trump to expand his authority over independent agencies like the FTC.