Connecticut Requires Thirty-Day Notice for Physician Practice Acquisitions
A new law in Connecticut took effect on October 1, 2014, that mandates that parties involved in a medical group practice acquisition notify the state attorney general at least thirty days in advance of closing of the acquisition.
The law requires hospitals and health systems to notify the attorney general of proposed transactions involving group practices composed of two or more physicians. The notification requirement does not exclude group practices. Medical group deals that involve a group practice composed of eight or more physicians, or that would result in a group practice of eight or more physicians, must be reported to the attorney general within the thirty-day time frame. Instructions for giving proper notice and who is required to give notice are posted on the attorney general’s website.
The law was enacted as a result of the belief that acquisitions can create market efficiencies and make good business sense but also drive down competition and create fewer options for consumers. Additionally, Connecticut’s health care market is changing rapidly, and notice of group practice deals allows the state to closely monitor the transactions for antitrust purposes.