FCC may stymie M&A for companies with DEI policies

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The U.S. Federal Communications Commission Chair Brendan Carr is preparing the agency to block mergers and acquisitions for companies with diversity, equity and inclusion policies, according to Bloomberg.

In a March 21 interview, Mr. Carr told companies looking for FCC approval to end “invidious forms of DEI discrimination.” Using merger and acquisition reviews to halt DEI initiatives is a new tactic, according to the report. Many of the large communications companies, including Paramount and AT&T, have revised or discontinued DEI programs since President Donald Trump’s executive orders directed federal agencies to end DEI initiatives.

The FCC doesn’t govern health system mergers and acquisitions – but the sentiment could spread to other commissions as well. Health system C-suite executives are keeping a close eye on these executive orders and the discussion around DEI at the federal level. Over the last five years, many hospitals and health systems have touted their programs promoting diversity, equity and inclusion in the workforce, as well as population health and health equity initiatives.

Several CEOs and health systems told Becker’s this year that they are carefully evaluating any new laws and policies to ensure compliance while also supporting their teams and providing a high level of care to their communities.

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