Potential pitfalls to avoid during mergers

Hospital executives considering a potential merger and acquisition must be aware of potential pitfalls that frequently occur before organizations finalize a deal. One of the biggest problems is whether the entities intending to merge should conduct an antitrust review, according to J.D. Supra Business Advisor. "The Federal Trade Commission has specifically targeted hospital mergers in its efforts to halt transactions that it believes will undermine clinical quality or push prices higher," write attorneys Michael King, Julie Sullivan and Darryl Landahl of Brownstein Hyatt Farber Schreck, "focusing on situations where the number of providers decreases from four to three, three to two, and two to one." Although one of the parties may claim it is on the brink of financial insolvency, the hurdle is particularly high when making such a claim. Read the full article at FierceHealthFinance

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