Health Care Cost Concerns Lead To Increased Scrutiny Of Health Care Transactions
Jim Owens and Cathy Ren authored this article in the Daily Journal. The article discusses California’s new Office of Health Care Affordability (OHCA), which was created to help contain health care spending. Among OCHA’s regulatory powers is the ability to review proposed health care transactions through the cost and market impact review (CMIR) process, which applies to certain material health care transactions that occur on or after April 1, 2024. OHCA does not have the ability to stop the transaction or impose conditions on the transaction, but the CMIR process allows it to require the production of a market impact report that could significantly delay the transaction. This has implications for hospitals, payors, certain physician groups, medical foundations, ASCs and imaging facilities, among others.