Health Law Observer

Timely insights and legal commentary on various health care issues and developments surrounding regulations, employment, transactions and a range of key industry matters. This blog is maintained by the Health Care Department of Stevens & Lee.

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FTC Asserts Its Rulemaking Authority in Opening Brief Defending Its Ban on Noncompetes

The FTC has argued on appeal that a district court impermissibly divested the commission of its core statutory authority to prevent the use of unfair methods of competition.

Filing Reminder: 2025 Pennsylvania Annual Report

Beginning in 2027, failure to file the Annual Report will ultimately subject the entity to administrative dissolution, termination or cancellation and loss of the protection of its name.

FTC Voices Its Disagreement With Hospital Association in Final HSR Rule

Responding to commentary from the American Hospital Association, the FTC concludes that there is no basis to excuse hospitals or health systems from any of the new requirements of the Final Rule amending premerger notification requirements.

FTC Appeals Decision in the Ryan Case: Fate of the Noncompete Rule Now Rests in the Appeals Courts

Following a nationwide injunction on the FTC’s ban on noncompete agreements, appeals courts – and likely the Supreme Court – will rule on the critical issues underpinning the validity of FTC authority.

Intent Required Under the Anti-Kickback Statute: Supreme Court Lets Stand Second Circuit’s Decision in the McKesson Case

The Supreme Court held in this key case that to be liable under the Anti-Kickback Statue, a defendant’s conduct must be knowingly and willfully unlawful.

FTC Files Suit Against the Three Largest Pharmacy Benefit Managers

The FTC recently sued the three largest pharmacy benefit managers alleging that they engaged in practices of retaining lucrative rebates on highly priced insulin medications and influenced patients to engage in treatment involving expensive drug products.

Ambulatory Surgery Centers Make Significant Net Patient Revenue Gains in Pennsylvania

As increasing rates of surgical volume move to ambulatory surgery centers (ASC), health systems may want to assess their ASC footprint more proactively, especially for those surgical specialties that are core to the health system’s business.

Pennsylvania Health System Settles HIPAA Violations Amid Rising Ransomware Threats

A ransomware attack ultimately resulting in a significant settlement from a PA health system underscores the pressing issue of cybersecurity in the health care sector, as OCR reports a 264% increase in large ransomware breaches since 2018.

Compliance Deadlines Approaching for HIPAA Final Rule Supporting Reproductive Health Care Privacy

As the Dec. 23, 2024, deadline for initial compliance is fast approaching, it is important that covered entities act promptly to ensure compliance obligations are in place.

New York Corporate Practice of Medicine and Its Impact on Medical Spas

We examine the various compliance requirements for owning and operating a medical spa within New York’s complex regulatory landscape.

New York and Connecticut AGs Close Northwell-Nuvance Antitrust Investigations With Assurances From the Health Systems

Cross-market health system mergers often draw increased scrutiny from regulators, but certain post-combination commitments in the Northwell-Nuvance deal address particular antitrust risks and regulatory concerns.

With Effective Date Fast Approaching, the FTC’s Noncompete Ban Is Set Aside

In a decision impacting employers and employees nationwide, a federal judge prohibited the FTC’s enforcement of its ban on noncompete agreements -- scheduled to take effect on Sept. 4, 2024.

American Hospital Association and Federation of American Hospitals File Amicus Brief in the Ryan Case

The recent Amicus Brief filed in Ryan, LLC v. FTC asserts that the FTC does not have the statutory authority to apply its rule to nonprofit entities including nonprofit hospitals and health systems.

Headed to the Finish Line – The FTC’s Noncompete Rule

The arguments made in these two cases, and the analyses and reasoning of these two courts, will likely frame the arguments that the federal court judges and Supreme Court justices will consider in deciding the fate of the FTC’s ban on noncompetes.
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Welcome to the Post-Chevron World: HHS on the Defensive

Loper plays a prominent part in several cases we'll discuss in this post, and these cases illustrate in many respects how litigation post-Chevron is likely to proceed.
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Pennsylvania Extends Reach of the FTC’s Noncompete Ban to Health Care Practitioners   

Effective Jan. 1, 2025, pursuant to the Act, certain noncompete covenants within employment contracts for certain health care practitioners will be barred.

Key Considerations in Utilizing a Letter of Intent in Health Care Transactions

If the deal is financially material to the parties, then utilizing a letter of intent is likely worthwhile to ensure parties are on the same page before committing significant time and resources to the transaction.
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A New Arena for Future Challenges to CMS Regulations – the Overturn of Chevron

Loper will have significant implications for heavily regulated industries, including health care, and will directly impact the U.S. Department of Health and Human Services and the Centers for Medicare & Medicaid Services.
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Challenging the FTC’s Constitutionality in the Aftermath of Jarkesy

In limiting its decision to the Seventh Amendment issue, the Court side-stepped the remaining constitutional questions that we have been tracking relating to the question whether the structure and therefore operation of the FTC is unconstitutional.

PA’s Corporate Practice of Medicine Doctrine: Challenges and Compliance Surrounding Management Services Agreements

Failing to draft management services agreements that comply with Pennsylvania’s corporate practice of medicine doctrine may result in lengthy scrutiny and high costs to rectify.

Novant Health Abandons Proposed Purchase Following Fourth Circuit’s Issuance of Injunction

After a split Fourth Circuit panel granted the FTC’s motion for injunction and enjoined Novant Health’s hospital acquisitions pending appeal, Novant announced that it was abandoning the planned purchase.
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District Court Denies Most Recent FTC Attempt to Stop Novant/CHS Transaction

The District Court denied the FTC’s requested injunction, but it did grant the FTC’s alternate request to extend the temporary restraining order that has been in place until June 21 to allow the FTC time to seek an injunction from the Fourth Circuit.
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District Court Denies FTC Request to Block Novant’s Purchase of Hospitals from CHS — Purchase Can Go Forward

We delve into the District Court’s analysis of the FTC’s arguments and how assessments of competitive benefits weighed against assertions of competitive harm.
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District Court Dismisses Welsh Carson While Allowing the FTC to Proceed Against U.S. Anesthesia Partners

HHS has issued a final rule under the Affordable Care Act which prohibits discrimination on the basis of race, color, national origin, age, disability or sex in covered health care programs and activities.
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