States seek restraints on healthcare private equity

Editor's Note

Multiple states seek to limit corporate influence in medicine by instituting additional checks on private equity-driven healthcare mergers, according to a March 17 report in Axios.

Referencing multiple state-specific reports, the article summarizes specific efforts in Massachusetts, where a new law expands oversight of transactions; Maine, where a bill would create a moratorium on PE hospital acquisitions; and Pennsylvania, where Governor Josh Shapiro is pushing to empower the state attorney general to review healthcare transactions. Overall, at least 13 states have introduced a total of 26 similar bills, the outlet reports.

Although scrutiny at the federal level also has increased, "federal policymakers have been reluctant to bestow more government power over business transactions,” the outlet reports. "[W]e definitely see states really carrying a torch now," said Chris Noble, policy director at the Private Equity Stakeholder Project.

Private equity advocates quoted in the article derided "headline-seeking politicians" misplacing blame, pointing to investment as a source of strength for telehealth, medical innovation, and more.

The full report offers additional context surrounding the recent state moves and upcoming developments, including a move by the Federal Trade Commission (FTC) to block an acquisition of a medical device coatings maker and a bipartisan Congressional report critical of private equity.