DOJ’s New Health Care Task Force Boosts Antitrust Vigilance
TL/DR –
The Department of Justice (DOJ) and the Federal Trade Commission (FTC) have increased their antitrust scrutiny on the health care industry, including the creation of the new Task Force on Health Care Monopolies and Collusion (HCMC). Similar to the Procurement Collusion Strike Force (PCSF), the HCMC will bring together enforcement officials, policy and industry experts, economists and data scientists, to focus on vertical consolidation of payors, providers, and data, with an expectation of increased criminal and civil antitrust enforcement. The HCMC will also guide the Antitrust Division’s policy and strategy, facilitate policy advocacy, and potentially shape the future of the health care industry.
The Health Care Industry Faces Increased Antitrust Scrutiny
The health care sector has recently been the center of antitrust concern, as seen with recent policy changes, alerts on private equity, and enforcement actions by the Department of Justice (DOJ) and Federal Trade Commission (FTC). The latest development is the DOJ’s new Task Force on Health Care Monopolies and Collusion (HCMC).
The Role and Impact of HCMC
Falling in line with the DOJ’s recent task force, the Procurement Collusion Strike Force (PCSF), the HCMC will combine the expertise of various enforcement officials to enhance investigations and actions. The Task Force will also involve policy and industry specialists, economists, and data scientists, to address the intricate nature of the health care industry. The focus will be on vertical consolidation of payors, providers, and data, which indicates an upcoming increase in criminal and civil antitrust enforcement throughout the health care industry.
Enforcement and Policy Directions
Considering the PCSF as an example, an increase in antitrust investigations and enforcement actions in the health care industry is expected with the HCMC. To support this, the HCMC launched a public reporting webpage on the Antitrust Divisions’ site which encourages consumers to report potential antitrust violations. The effectiveness of this initiative is yet to be determined.
In addition to enforcement, the Task Force will also influence the Antitrust Division’s policy and strategy, advocating for policy changes. This policy focus is expected given the recent shift towards more assertive antitrust policy, and last year’s DOJ’s withdrawal of key healthcare policy statements. These changes may significantly shape the future of the health care industry.
Significance and Implications
The DOJ and FTC’s ongoing rigorous review of healthcare transactions under the new Merger Guidelines means that business practices that could invite civil and criminal liability under the Sherman and Clayton Acts will face increased scrutiny. This could result in a more comprehensive examination of common practices and evolving coordination methods in the health care and health care tech industries.
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