The Federal Trade Commission (FTC) has provided new guidance on non-profit hospital business combinations that will result in more hospital transactions being reportable under the Hart-Scott-Rodino Act (HSR). Any affiliation that may result in a change in a hospital’s beneficial ownership, not just a change in governance, will likely now need to be reviewed by the FTC.

As a result, boards of hospitals that are pursuing a partnership will need to take extra measures to ensure that their organizations:
• Demonstrate the rigor of their partnership selection and decision-making process.
• Document their objectives and the benefits of the partnership.
• Allow for additional time to close to accommodate HSR review.

Read more about the new guidance here in an article authored by Juniper and Waller Lansden Dortch & Davis.