Several federal agencies are teaming up to launch a cross-government public inquiry into the effects of private equity and other corporations on healthcare.
The Federal Trade Commission, the Justice Department and HHS specifically seek information on healthcare transactions, including non-reportable deals, according to a March 5 news release announcing the inquiry.
"Private equity firms and other corporate owners are increasingly involved in healthcare system transactions and, at times, those transactions may lead to a maximizing of profits at the expense of quality care," the release said. "The cross-government inquiry seeks to understand how certain healthcare market transactions may increase consolidation and generate profits for firms while threatening patients' health, workers' safety, quality of care and affordable healthcare for patients and taxpayers."
The agencies are requesting public comment on deals conducted by health systems, private payers, private equity funds and other alternative asset managers that involve healthcare. They also are requesting information on deals that would not be reported to the Justice Department or FTC for antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act.
The inquiry comes as private equity-backed physician groups grew 600% in a decade. It also follows a Jan. 22 Grant Thornton report that predicted 2024 will be a "vigorous season for M&A activity in healthcare."
Patients, consumer advocates, physicians, nurses, healthcare providers and administrators, employers, insurers and other members of the public have until May 6 to submit comments at Regulations.gov.