While mergers and acquisitions in the health services industry declined by 9% through Nov. 15, 2024 (compared with the same period in 2023, according to a recent report from PwC), deal activity is still robust compared with that before the onset of COVID-19, with annual deal volume nearly 70% higher than the pre-pandemic trendline.
However, the Federal Trade Commission is increasing scrutiny of premerger notification forms to better detect illegal mergers and acquisitions that violate antitrust laws. The agency finalized changes to the form that requires more information to identify deals that may require an in-depth antitrust investigation.
“Premerger review is a critical task for the antitrust agencies, and to do it well, we need information about each deal’s potential antitrust risk,” said Shaoul Sussman, associate director for litigation in the FTC’s Bureau of Competition in a press release. “This rulemaking is a much needed update to address changes in the marketplace that have undermined the agencies’ ability to detect and prevent illegal mergers, while at the same time creating a more efficient review process. The Bureau thanks the entire cross-agency team that has worked tirelessly on this important rulemaking.”
Q4 2024 saw a few deals canceled or put on hold due to antitrust concerns. Despite this, in its 2025 U.S. deals outlook, PwC stated that there is optimism for increased deal activity in 2025 due to the pro-business stance expected from the new administration.
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