FTC issues ruling on premerger notification rules, increases burden on merging organizations

The Federal Trade Commission Oct. 10 finalized changes to the premerger notification rules, form and instructions under the Hart-Scott-Rodino Antitrust Improvements Act. The final rule, while less burdensome than the proposed rule, increases the reporting requirements on the current HSR form, particularly for the buyer.

"The AHA is disappointed that the FTC moved forward with this flawed and pointless rule," stated Chad Golder, AHA general counsel and secretary. "As we explained in our comment letter, it functions as little more than a tax on mergers. The FTC still has not sufficiently explained why all this information is needed. The agency already has more than enough information about hospital transactions, and it has shown no hesitation in challenging them. The final rule will just require hospitals to divert time and resources away from patient care towards needless compliance costs." When the FTC issued the proposal in 2023, the AHA urged the FTC to withdraw its proposed changes, stating it would add unnecessary burdens and increase costs without adding benefits. The final rule and HSR form will go into effect 90 days after publication in the federal register.