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Rising Medical Costs Force Greater Scrutiny Of Health M&A Deals

Member Lara Compton spoke to Bloomberg Law about the increased state regulations on major health-care transactions. Lara commented on California's new agency, the Office of Health Care Affordability, which requires any health care entity that makes a major change in its governance structure to provide notice. She explained, "Historically, the state has reviewed a limited number of health deals, such as nonprofit hospitals transactions, that really represents a small part of the overall health-care ecosystem in California. The new law really opens things up substantially.” Lara continued, "The regulations are supposed to spell out the parameters of what might trigger a review under the permissive authority of the agency."

Source

Bloomberg Law