Rising Medical Costs Force Greater Scrutiny of Health M&A Deals

Major health-care business deals will undergo greater oversight from state regulators as part of a larger effort to rein in soaring health spending.

California will release draft regulations July 31 on how the state will implement notice-and-review requirements for mergers and acquisitions under a health-care affordability bill enacted last year (SB 184). A similar law in New York to review material transactions in health-care is slated to take effect Aug. 1. Minnesota, Rhode Island, Nevada, Massachusetts, Oregon, Connecticut, and Washington also have comparable laws, according to a tracker by Ropes & Gray LLP.

States are ...