FTC and DOJ signal greatly increased scrutiny of private equity firms’ acquisitions in health care

FTC and DOJ signal greatly increased scrutiny of private equity firms’ acquisitions in healthcare 
The National Law Review; Herbert F. Allen, Matthew C. Hans, Arindam Kar, Mitchell D. Raup of Polisinelli PC; 3/19/24
The top enforcers at the Federal Trade Commission (FTC) and Antitrust Division of the Department of Justice (DOJ) are sending strong signals that private equity (PE) firms are likely to be the next target in the Biden Administration’s aggressive antitrust enforcement agenda. ... Dr. Eileen Applebaum, an economist at the Center for Economic and Policy Research, cited a range of effects that can be attributed to PE ownership:

1. Taking profits that could be used to invest in new facilities, staffing, or technology.
2. Manipulating CMS capitated reimbursement programs in ways that limit access to health care for seniors.
3. Reducing staffing in ways that reduce quality and cause harm to patients and workers.
4. Encumbering acquired health care companies with debt that reduces their long-term viability.
5. Selling off real estate owned by acquired health care companies and entering them into oppressive long-term leases.