Partner Frank Carsonie Quoted in Modern Healthcare on Hospital Merger Oversight Shifts

Benesch Healthcare+ Chair Frank Carsonie was featured in Modern Healthcare’s article, “How Hospital Merger Oversight is Shifting Deal-Making.” Frank highlights that, “many of the states in the Southeast don’t have some of the significant regulatory barriers we see in California, Oregon, Washington, New York, New Jersey or Massachusetts.” He also points out that regulatory oversight rarely stops merger discussions, adding that “executives consider many other factors, such as population growth, competition, availability of primary and specialty care and payer mix.”

The article highlights the growing trend of hospital mergers and acquisitions in the southern United States, driven by factors like population growth, high numbers of Medicaid patients, and fewer regulatory barriers. Southern states generally lack stringent healthcare transaction oversight, making them attractive to investors compared to more regulated regions like California or New York. This trend is further fueled by financial challenges among hospitals, potential Medicaid cuts, and streamlined processes in states without corporate practice of medicine laws. Experts note that demographic and economic factors often outweigh regulatory considerations in shaping these transactions.

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