Health Care Perspective: The FTC and DOJ’s Long- Awaited Enforcement Guidelines for Vertical Mergers
- October 30, 2020
- David R. Brenneman , Morgan Lewis , Washington, DC
- Ryan Kantor , Morgan Lewis , Washington, DC
- Zachary M. Johns , Morgan Lewis , Philadelphia, PA
- Bernard W. Archbold , Morgan Lewis , Washington, DC
Abstract
The health care industry has recently seen a number of high profile mergers between companies that compete in different sections of the health care ecosystem: insurers have merged with providers, pharmacies have merged with insurers, and insurers have merged with pharmacy benefit managers (PBMs). Meanwhile, hospital groups have acquired physician practices over the last decade at an accelerating rate; for instance, in 2011 less than 25% of specialist practices and less than 30% of primary care physician practices were owned by a hospital group. By 2018, hospital systems owned 45% of specialist practices and 48% of primary care physician practices. Given the financial stress many members of the health care industry are under as a result of COVID-19, further consolidation is likely.
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