backTwo Non-Profit Health System Mergers Under Review by Minnesota Attorney General—Minnesota recently passed a state law providing the Minnesota Attorney General additional authority to determine whether mergers of health systems are in the public interest and enjoin or unwind deals found not to be in the public interest or which would limit competition. Using this authority, the Minnesota Attorney General announced on October 3, 2023, that he is reviewing two pending health system mergers, which currently have closing windows projected in early 2024. As part of the review, the Attorney General has called for public input via a community meeting and online submission portal which he said could shape the review process. One of the mergers would create a network of 3,800 providers, 150 sites of care, and 25 hospitals. The other deal entails a merger of 19 hospitals.
Minnesota is not alone in passing recent law regarding state powers to review mergers and acquisitions and prevent such deals from occurring if they do not believe they are in the public interest. For example, California, New York, and Illinois have also recently passed similar laws regarding certain healthcare merger and acquisition deals. These new laws generally require prior notice of the anticipated merger or acquisition, and in some cases, a regulatory review process.
The Attorney General’s October 3, 2023 announcement regarding review of the two recent proposed health system mergers can be found here.
Reporter, Amy L. O’Neill, Sacramento, CA, +1 916 321 4812, aoneill@kslaw.com