In the article, “Boston’s concentrated market keeps state regulators busy with merger scrutiny,” Modern Healthcare reported that pricing, access and quality guardrails imposed by state authorities, coupled with state legislation, are expected to increase regulation of regional hospital system deals. Many states are looking to the Boston area’s recent health system merger as an example of the strict state oversight actions that will shape large regional health system deals going forward.
The publication turned to partner Neil Olderman for his insight on the overall landscape of health system mergers and acquisitions. Olderman noted several different factors impacting regulations. “We have had several things happen over the past nine months—a pandemic, a change in administration, the threat of overturning the Affordable Care Act, the advent of technology like telehealth to expand service areas,” said Olderman.
Regarding the recent deal in Boston, Olderman added “You may have attorneys general look at what Massachusetts did as a starting point or blueprint, but the countervailing force is that there is a public policy need that will tailor an overly aggressive activist stance from authorities.”