Kevin Goldstein Discusses “Baby HSRs” with State Net Capitol Journal

Winston & Strawn partner Kevin Goldstein spoke with State Net Capitol Journal about laws recently enacted by various states, known as “mini-HSR Acts” or “Baby HSRs”, and their effects on healthcare mergers. The laws require merging parties to notify state agencies of certain proposed transactions and observe a waiting period prior to closing.  Most states with Baby HSR laws specifically target healthcare transactions, while some states also require premerger notifications in other important sectors like retail gasoline or heating oil.

Kevin said the cost of these reviews alone could, in theory, kill some smaller proposed transactions. Businesses should be prepared to explain that their deals are being proposed for the right reasons, such as lowering costs, increasing output, or improving the quality of patient care.

He said this legislative trend has emerged in part because of longstanding political interest in regulating healthcare and increasingly bipartisan support for strong antitrust enforcement.  Kevin also noted that the National Association of Attorneys General has been supportive of Baby HSR legislation and attorneys general have helped push for its passage in states.

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