March 18, 2024 (MLN): The U.S. government’s scrutiny of competition in the healthcare sector, particularly regarding private equity’s role, is likely to have mixed implications for credit profiles, Fitch Ratings says in a new report.
The recent Request for Information signals a continuation of the government’s focus on industry structure.
The inquiry, which seeks to examine the effects of smaller acquisitions echoes the Federal Trade Commission’s (FTC) September 2023 lawsuit against U.S. Anesthesia Partners, Inc. in which the government alleges that "roll-up" strategies compromise competition.
Beyond this latest probe, the FTC and Department of Justice revised merger guidelines in 2023 and have challenged several proposed transactions.
‘U.S. Government’s Continued Focus on Competition in Healthcare’ details the potential credit ramifications of the government’s heightened examination of healthcare market dynamics and its implications for the sector’s financial strategies.
