AG Jepsen: New Physician Practice Acquisition Notice Requirement Takes Effect on October 1

HARTFORD, Conn., Sept. 29 -- The Connecticut Attorney General issued the following news release:

Legislation proposed by Attorney General George Jepsen requiring that notice of certain physician practice acquisitions be provided to the state Office of the Attorney General will take effect on October 1. Today, Attorney General Jepsen announced that, in order to facilitate the new required notice, he has posted a new form on his Web site as well as instructions for the form's completion and submission.

"Acquisitions and mergers often make business sense, and may lead to some efficiencies and more integrated care, but they also may lessen competition, leading to higher prices and fewer consumer options," Attorney General Jepsen said. "The notice requirement enacted this year will allow us to better monitor the healthcare market and, where appropriate, to enforce antitrust laws designed to protect Connecticut consumers. In an effort to make compliance as easy as possible, my office has posted a new form and detailed instructions for submitting the required notice on my Web site."

The new instructions for the required notice and the link to the spreadsheet form to be used for the notice can be found by clicking here or by visiting www.ct.gov/ag.

Under Public Act 14-168 - An Act Concerning Notice of Acquisitions, Joint Ventures, Affiliations of Group Medical Practices And Hospital Admissions, Medical Foundations And Certificates of Need - parties to any transaction resulting in a material change to a group medical practice must notify the Attorney General at least 30 days prior to the effective date of the transaction beginning on October 1, 2014.

In particular, hospitals, health systems and certain of their affiliates must provide the Attorney General with notice of proposed transactions involving group practices comprised of two or more physicians. Additionally, proposed transactions between or among group practices that result in a group practice comprised of eight or more physicians will be required to provide notice.

The Attorney General proposed this year's legislation in response to the rapid consolidation Connecticut's healthcare industry is experiencing and the potential impact that consolidation may have on competition and healthcare costs. In crafting the legislation, he worked with a number of stakeholders, including employers, advocates, physicians, hospitals, healthcare insurance companies and labor representatives.

The Attorney General thanked Governor Malloy, who sponsored and supported the measure, as well as the many members of the Connecticut General Assembly who passed the overwhelmingly bipartisan measure with near unanimity.

The Attorney General's Healthcare Competition Working Group - Assistant Attorneys General Charles Hulin, Thomas Ryan, Rachel Davis, Gary Becker and Richard Porter - under the direction of Assistant Attorneys General Michael Cole, chief of the Antitrust and Government Program Fraud department, and Henry Salton, head of the Health and Education department, with Special Counsel Robert Clark, are assisting the Attorney General with this matter.

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