Recent Proposed Regulations Regarding Accountable Care Organizations (ACOs) and Their Potential Impact on Deal Activity

April 21, 2011
The Centers for Medicare and Medicaid Services (CMS) recently released long-awaited proposed regulations for Accountable Care Organizations (ACOs), organizations considered by both Democrats and Republicans to be a possible mechanism for containing spiraling health care costs while simultaneously improving quality of care. In conjunction with the CMS release, proposed regulations aimed at providing flexibility in the applicability of antitrust laws and certain other federal laws to accommodate the formation and operation of ACOs were issued. This update examines the proposed regulations and their potential impact on both the ACO creation process and efforts to consolidate the health care service sector.