Illinois is gearing up to increase its oversight of proposed healthcare facility mergers and acquisitions.
Taking effect Jan. 1, HB 2222 was signed by Gov. J.B. Pritzker on Aug. 15 and will require healthcare facilities to notify Attorney General Kwame Raoul within 30 days of a proposed merger or acquisition. Failure to comply with the legislation could subject a healthcare facility to a civil penalty of nearly $500 for each day it is in violation of the requirement.
"Currently, many health care mergers and acquisitions are not reviewed at the state or federal level. Without proper review, these transactions can lead to diminished options for individuals who are already struggling to access health care services in their communities," Mr. Raoul said in a May 18 release.
The bill aims to help establish a state-level premerger notification program for mergers involving healthcare facilities and large provider organizations. Additionally, the bill will provide necessary information to Mr. Raoul's office to determine if a proposed deal requires an additional investigation or, if needed, a challenge over anticompetitive conduct that could reduce competition or harm the public or employees.
"By requiring timely notice of mergers and acquisitions and establishing a state-level review process, we are safeguarding the interests of our residents," said Illinois Sen. Ann Gillespie, a state Senate sponsor of the bill. "This legislation empowers the Attorney General's office to investigate and challenge practices that could harm the public or compromise quality of care. Together, we can ensure that health care services remain affordable and accessible for all Illinoisans."
Becker's has reached out to Mr. Raoul's office for comment on HB 2222 before it goes into effect on Jan.1.