Private Equity Health Deals Prompt Scrutiny by Antitrust Agency

The Federal Trade Commission is scrutinizing the role of private equity in health deals, FTC Chair Lina Khan said, particularly in areas where investors buy up several businesses in the same industry.

The FTC is “looking closely at the role of private equity,” Khan said at a conference in Salt Lake City on Friday, highlighting it as one of her top priorities related to health care.

So-called roll-up transactions are a strategy by some investors to acquire multiple smaller players in an industry in order to create a single large player. Often, a private equity firm will make an initial ...