Antitrust Practice Group Educational Call (February 2019)
Includes a Live Event on 02/13/2019 at 12:00 PM (EST)
Time: 12:00 - 1:00 PM Eastern
Format: Educational Call
Topic: Don’t Forget about the States! The Powers of State Attorneys General to Impose Conditions in Order to Approve Transactions
Federal antitrust enforcers have cleared several of the largest pending healthcare transactions over the past few months, in many cases without requiring commitments from the merging parties. But while federal antitrust clearance certainly bring merging parties closer to officially combining, many transactions face additional (and expensive) hurdles in terms of state approvals. For example, the Massachusetts Attorney General recently reached a settlement with Beth Israel and Lahey Health, allowing their transaction to proceed after the parties agreed to a seven-year price cap and $70 million in investments to expand health care access to low-income patients. Similarly, regulators in California reached separate settlements with Optum/DaVita, CVS/Aetna, CHI/Dignity, and Cigna/Express Scripts, holding the merging parties to extensive commitments including maintenance of key services and investment of many millions of dollars for community projects and other philanthropic activities across the state. Regulators in New York also imposed detailed commitments (including freezing of rate increases) in approving the CVS/Aetna and Cigna/Express Scripts transactions. While parties are often ready and willing to enter into such commitments in order to close their deal, the conditions imposed by states carry significant costs and burdens and often require extensive effort by the parties to ensure compliance. This educational call will review states’ authority to impose such conditions and will explore whether and how parties can better anticipate the multi-year burdens and expenses of state consent agreements.
Note: No CLE offered for this course.
- Antitrust Practice Group
Kenneth W. Field
Assistant Attorney General, Antitrust Bureau
Office of the New York State Attorney General
New York, NY