HPE Miami 2023 | Washington Insights: Expected Federal Health Policy and Reimbursement Changes in 2023 - McDermott Will & Emery

HPE Miami 2023 | Washington Insights: Expected Federal Health Policy and Reimbursement Changes in 2023


During this session, Partner Eric Zimmerman moderated a panel that discussed anticipated areas of health policy development in 2023 in light of a new Republican-controlled Congress that has signaled its intent to increase oversight of the Biden administration.

Session panelists included:

  • Debra Curtis, Vice President, McDermott+Consulting
  • Brian Fortune, Senior Managing Director, Farragut Square Group
  • Darren Patz, Esq., Immediate Past SVP & Chief Government Affairs Officer, Pediatrix Medical Group

In Depth

Key takeaways included:

  1. Opposing political parties sharing power in the federal government does not necessarily create a deadlock. Generally speaking, Congress members are interested in advancing and passing legislation, so noncontroversial items should continue to move through Congress with ease despite requiring cooperation between Republicans and Democrats. Additionally, some bills must pass during each legislative session and pertinent social issues, such as crime, motivate legislative progress.
  2. In terms of presidential politics in 2023, expect the Biden administration to continue to advance healthcare legislation and policy in an ongoing contrast to the Trump administration. Given that any proposed bills would need to advance through a Republican-controlled Congress to become law, the Biden administration is likely to address controversial areas of healthcare policy via executive or administrative action. Legal challenges will continue to test the limits of what may be achieved by a presidential administration through executive action.
  3. Skepticism of private equity investment in the healthcare sector is likely to continue in 2023, both at the federal and state level. Several state legislatures, such as those in New York and Washington, have recently proposed legislation that would create significant regulatory hurdles for private equity transactions in the healthcare space. Additionally, several states, as well as the Federal Trade Commission, have demonstrated an increased interest in the enforceability of non-compete covenants that are standard in many healthcare transactions. Notably, the skepticism of private equity investment and efforts to regulate the industry are not limited to red or blue states but rather span across the political spectrum.
  4. To combat negative press directed toward private equity involvement in the healthcare sector, private equity firms should consider taking a more active role in creating a positive image in the eyes of the public. Many positive aspects of private equity investment in healthcare receive little-to-no attention in the press, such as creating greater access to healthcare in rural or underserved areas, lowering the cost of healthcare by causing a shift toward ambulatory care and contributing to innovation and efficiency in the industry.