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Pennsylvania Attorney General Requires Merging Hospitals to Contract Separately with Payors in Settlement Agreement

Posted in Mergers & Acquisitions

by Jeffrey W. Brennan, Ashley McKinney Fischer and James Buchanan Camden

In addition to the federal antitrust enforcement agencies, state attorneys general continue to take an active role in antitrust enforcement, especially in the health care industry.  Last week, the Pennsylvania Attorney General announced that it had entered into a settlement agreement with two merging hospitals requiring the hospitals to contract separately with payors post-closing.  Early on in transaction planning, hospitals and health systems considering transactions with potential competitive implications should identify the rationale for and benefits of the transaction, in preparation for both state and federal antitrust agency review.

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