In both cases, the parties abandoned the challenged transaction within just two weeks, with RWJBarnabas abandoning its deal on June 14 and HCA and Steward taking the same action three days later. Saint Peter’s University Hospital and RWJBarnabas are the only two hospitals in New Brunswick, New Jersey and are located just a mile apart. In the RWJBarnabas/Saint Peter’s case, the FTC complaint alleged that the proposed acquisition would eliminate head-to-head competition between the parties in Middlesex County, New Jersey. In the HCA/Steward case, the FTC alleged that, as the second and fourth largest healthcare systems in the Wasatch Front region of Utah, HCA and Steward helped to keep costs down by competing with one another.
FOCUSED SCRUTINY TRIAL
If the Commission determines that an administrative trial is in the public interest, allegations will be tried before an administrative law judge. The FTC issues an administrative complaint when it believes the law has been or is being violated. Both cases involved traditional antitrust analysis of market shares for general acute care services, and in both cases, the Commission voted 5-0 to seek administrative trials. June began with the FTC voting to file an administrative complaint and a lawsuit in federal court to block two proposed hospital transactions – HCA’s merger with Steward Health Care System in Utah and RWJBarnabas Health’s acquisition of Saint Peter’s Healthcare System in New Jersey. While the industry has expected increased scrutiny in the hospital context, the recent expanded focus on private equity-backed “roll-up” provider transactions has been somewhat more surprising because, despite rhetoric in recent headlines, such transactions rarely have the type of market dynamics that invoke antitrust scrutiny.
Get the latest news from in your inbox.June was a very busy month for FTC enforcement actions and may signal a potential sea change in the near-term viability of large healthcare deals for both hospital and private equity-backed provider platforms. The regulator’s other priorities included protecting retirement savings, notably superannuation, for Australia’s ageing population and ensuring financial products are designed safety and marketed appropriately. The report says technology-aided scams are expected to increase, with $129 million alone lost in 2021 through dodgy bank transfers and another $99m ripped from consumers through nearly 5000 crypto investment scams.ĪSIC’s attack plan includes development an effective regulatory framework to counter the misconduct in crypto assets, “including those that mimic traditional (investment) products but seek to circumvent regulation”, tougher disclosure documents and implementing and monitoring the newly-agreed regulatory model for exchange-traded products. “We remain alert to changes and developments in our operating and regulatory environment, and we will continue to make rapid, strategic decisions to adapt where needed,” he said. Mr Longo said the changing priorities recognised that “scenarios can change quickly”, noting “a diverse range of technologies are enabling scams”. The crackdown won’t come as a surprise, given ASIC’s previously disclosed concerns about the rising number of cryptocurrency investors in Australia and its belief that many buyers of Bitcoin and other digital assets don’t fully understand the investment risks. “Our focus will include scams and crypto-assets,” he said. “We will take action to prevent harms arising from greenwashing and to support effective climate and sustainability governance and disclosure,” it said.Īfter ASIC drilled down on cyber threats last year, chairman Joe Longo said the latest lan “broadens our focus to other digitally enabled misconduct as emerging technologies and products change our financial ecosystem”.
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