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.  

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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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