Federal regulators are giving the public more time to respond to a request for information examining acquisitions by private equity companies in the healthcare sector.
The RFI seeks to understand how certain healthcare market transactions “may increase consolidation and generate profits for firms while threatening patients’ health, workers’ safety and the quality and affordability of health care for patients and taxpayers,” according to a news release from the Federal Trade Commission, the Justice Department and the Department of Health and Human Services, which issued the RFI in March.
The agencies on May 1 extended the deadline for comments by 30 days to June 5. The original deadline was May 6.
The RFI requests public comment on deals conducted by health systems, private payers, private equity funds and other alternative asset managers that involve health care providers, facilities or ancillary products or services. It also seeks information on deals that are not reported to the federal antitrust agencies.
Under the law, mergers valued at more than $119.5 million must notify the federal antitrust authorities and wait at least 30 days before closing. However, transactions under that threshold don't need to be reported.
"When private equity firms buy out healthcare facilities only to slash staffing and cut quality, patients lose out," FTC Chair Lina Khan said in a statement when the RFI was announced. "Through this inquiry the FTC will continue scrutinizing private equity roll-ups, strip-and-flip tactics, and other financial plays that can enrich executives but leave the American public worse off."
Elsewhere in Washington, Sen. Ed Markey, D-Mass., last month issued a discussion draft for his bill, the Health over Wealth Act. Among the bill’s provisions, it would require healthcare entities owned by private equity to report additional information, such as fees collected by the private equity firm; dividends paid by the healthcare entity to the private equity fund; lobbying or political spending by the private equity fund and healthcare entity; and staffing information at the healthcare entity.
Markey’s discussion draft public comment period ends May 3.
