US healthcare mergers and acquisitions to survive antitrust chill, law firm predicts

Most of the guide covers the basics of mergers and acquisitions, such as how a client can start, finance or buy a healthcare company.

The Federal Trade Commission, the Antitrust Division of the U.S. Department of Justice, and the U.S. Department of Health and Human Services recently requested information from U.S. authorities on consolidation in health care markets.

“The impact of RFI could be significant,” Seyfarth’s team says. “Healthcare acquisitions that result in horizontal or vertical consolidation could become subject to additional scrutiny from the appropriate federal agencies.”

Members of Congress, federal regulators and state policymakers are also closely monitoring private equity investors’ involvement in health care deals.

Despite these challenges, in the United States, “the healthcare M&A sector remains attractive due to inelastic demand and stable third-party payer systems. Investors continue to seek opportunities in this resilient industry, anticipating further transformational deals and technological advances.”

The team predicts that as companies seek growth opportunities, the number of mergers and acquisitions should increase.

If Seyfarth’s team is right, the strong M&A market in healthcare could mean that healthcare companies will still have a chance to sell stock and gain market share.

For employers and benefits brokers, consolidation in the healthcare marketplace could force buyers to look harder for new entrants and smaller players that could compete with the giants.