Warning: Undefined array key "HTTP_ACCEPT_LANGUAGE" in /home/u596154002/domains/usbusinessreviews.com/public_html/wp-includes/load.php on line 2057

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the rank-math domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/u596154002/domains/usbusinessreviews.com/public_html/wp-includes/functions.php on line 6114
Amazon-One Medical merger could hit snag with FTC - Best Business Review Site 2024

Amazon-One Medical merger could hit snag with FTC

[ad_1]

The Federal Trade Commission’s skepticism of tech-fueled healthcare mergers could spell trouble for Amazon and One Medical, experts say.

For years, the FTC has tried to thwart mergers between large hospital systems. Recent action reveals its focus could be widening to include mergers involving digital health providers and big tech companies.

Erik Gordon, an assistant professor at the University of Michigan’s Ross School of Business, said the FTC may look at companies sharing patient data with third parties as an anti-competitive practice and use it as a reason to stop these proposed mergers.  

“There’s a lot of uncertainty about what kinds of combinations you can do in healthcare,” Gordon said. “If you’re trying to build a new kind of healthcare provider, how certain can you be that the government will allow it? If I was advising one of these companies, I’d tell them to include a big breakup fee in the contract in case the deal is blocked.”

In September, the FTC began investigating tech giant Amazon’s planned $3.9 billion merger of One Medical, a hybrid primary care company. 

Earlier this month, The Wall Street Journal reported the FTC was preparing a possible antitrust suit against Amazon. A separate report from DealReporter this month said the agency was hiring outside economists to review the Amazon-One Medical proposed merger. If the deal isn’t approved by federal regulators, $195 million will be owed to One Medical. 

An Amazon spokesperson declined to comment. Spokespeople from One Medical and FTC did not respond to requests for comment.

The federal government has taken a look at several high-profile healthcare mergers in the last year, particularly those that include vertical integration. In June, the FTC asked for more information on UnitedHealth Group’s proposed $5.4 billion acquisition of home health provider LHC Group. In October, the Department of Justice probed CVS Health’s potential $8 billion acquisition of Signify Health, a tech company that provides home health risk assessments.

“These combinations are going to bring up a whole new host of antitrust questions,” Gordon said.

Experts are unsure whether a potential suit against Amazon would involve the company’s growing investments in healthcare. But what’s clear is regulators have taken an increasingly close look at all tech companies’ use of health data. Earlier this month, the FTC alleged GoodRx shared consumers’ personal health information to Facebook, Google and other third parties.

For big tech companies, the scrutiny will be even higher and could have an effect on any planned mergers, said Robert Miller, a partner at law firm, Hooper, Lundy & Bookman.  

“The [Biden] administration has signaled that it’s not only very interested in healthcare, but it’s very interested in scrutinizing the role of big tech in the American economy,” Miller said. “This isn’t just a merger between two companies operating in healthcare…the FTC may see this is an example of big tech’s interest in healthcare.

Gordon said that FTC Chair Lina Khan is likely going to interpret antitrust law differently than her predecessors at the agency, which could mean a more stringent review of Amazon and One Medical. Khan wrote a legal paper in 2017 making an antitrust case against Amazon.

“[Khan] has made it clear that she has a much more expansive view of what merger law is, or what merger law should be,” Gordon said. “She has put folks on notice that she is going to enforce the law the way she thinks it reads. And she’s willing to lose court cases to try and do this.”

Beyond Amazon’s intent to acquire One Medical, Miller said the interest in large scale deals could create a downstream effect for smaller companies.

“Anytime there’s antitrust enforcement action I would say that it has outside effect on the market,” Miller said. “For every deal that is an Amazon and a One Medical, you have many smaller deals that are still subject to antitrust review.”

According to Miller, large deals are unlikely to be derailed by the costs of defending them. The benefits of smaller mergers could be consumed by legal fees, especially those that require multiple phases.

“Anyone who is considering one of those smaller deals is probably factoring that in, so I wonder if it is going to either reduce the flow of capital into healthcare or if it’s going to have any kind of chilling effect on healthcare transactions,” Miller said.

[ad_2]

Source link

slot gacor slot gacor togel macau slot hoki bandar togel slot dana slot mahjong link slot link slot777 slot gampang maxwin slot hoki slot mahjong slot maxwin slot mpo slot777 slot toto slot toto situs toto toto slot situs toto situs toto situs toto situs toto slot88 toto slot slot gacor thailand slot bet receh situs toto situs toto slot toto slot situs toto situs toto situs toto situs togel macau toto slot slot demo slot pulsa slot pragmatic situs toto deposit dana 10k surga slot toto slot link situs toto situs toto slot situs toto situs toto slot777 slot gacor situs toto slot slot pulsa 10k toto togel situs toto slot situs toto slot gacor terpercaya slot dana slot gacor pay4d agen sbobet kedai168 kedai168 deposit pulsa situs toto slot pulsa situs toto slot pulsa situs toto situs toto situs toto slot dana toto slot situs toto slot pulsa toto slot situs toto slot pulsa situs toto situs toto situs toto toto slot toto slot slot toto akun pro maxwin situs toto slot gacor maxwin slot gacor maxwin situs toto slot slot depo 10k toto slot toto slot situs toto situs toto toto slot toto slot toto slot toto togel slot toto togel situs toto situs toto toto slot slot gacor slot gacor slot gacor situs toto situs toto cytotec toto slot situs toto situs toto toto slot situs toto situs toto slot gacor maxwin slot gacor maxwin link slot 10k slot gacor maxwin slot gacor slot pulsa situs slot 10k slot 10k toto slot toto slot situs toto situs toto situs toto bandar togel 4d toto slot toto slot