Justice Department puts healthcare consolidation on notice

A Justice Department antitrust division leader is telling payers and providers they should expect close scrutiny of any acquisitions, Politico reported Oct. 27.  

Andrew Forman, deputy assistant attorney general for the Justice Department's antitrust division, said the department is ramping up its post-merger investigations and will look into attempts to illegally monopolize healthcare markets, according to the report. 

Mr. Forman was speaking Oct. 26 at a Washington, D.C., conference focusing on competition in the healthcare sector. He said the Justice Department is wondering whether value-based care — a key justification for many consolidation deals —  is "delivering on the promise of lower prices and improving outcomes."  

"Is the integration, as the companies argue, a good thing? If done properly, it might be," Mr. Forman said, according to Politico. "Or has the consolidation led to … higher prices, less innovation and deeper moats defending sources of power?"

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