Axing Health-Care Antitrust Safety Zones Will Impact Transactions

The Department of Justice’s Antitrust Division recently withdrew its support for three joint policies with the Federal Trade Commission, which each created antitrust safety zones in the health-care industry, Bloomberg reports. These included a 1993 policy with safety zones for mergers, participation in exchanges of price and cost information, and joint purchasing arrangements. In addition, a 1996 policy clarified and expanded the 1993 safety zones and provided additional guidance for conduct that fell outside the safety zones. And finally, a 2011 policy created a safety zone for accountable care organizations.

This move shifts the landscape for antitrust enforcement and may change longstanding analyses for health-care industry transactions and collaborations. Read more.

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