Business regulation and regulated industries are complex, with various laws and practices governing different sectors. The American Bar Association’s Business Law Section provides resources and updates on these topics, including antitrust law, banking law, and consumer finance law.
Regulation of Health Care Systems
The Department of Justice and Ohio’s attorney general recently settled an antitrust lawsuit against OhioHealth Corp., alleging the system’s anti-steering and gag-rule contract provisions violated Section 1 of the Sherman Act and Ohio’s Valentine Act. According to the complaint, OhioHealth, in combination with at least two other competing health care systems, accounts for at least 85 percent of the commercial health insurance business in the Columbus area.
The complaint alleged that OhioHealth’s contract provisions restricted health insurers from directing patients to alternative health care providers, and also prohibited insurers from providing information to patients about the costs and quality of care at different providers. This settlement may have implications for other health care systems and insurers, as it highlights the importance of complying with antitrust laws and promoting competition in the health care market.
Mediation and Tax Risks
Mediation is a nonbinding process, but the goal is often to reach a binding deal. If a case is resolved through mediation, there may be a handshake agreement, but it’s essential to consider the tax implications of such a deal. Tax risks in mediation term sheets can be significant, and parties should be aware of these risks to avoid unintended consequences.
A recent article by Robert W. Wood discussed the tax risks in mediation term sheets, highlighting the importance of considering tax implications in mediation agreements. The article noted that mediation is often preferred over litigation, but the tax implications of a mediated settlement can be complex and require careful consideration.
They will likely see more cases like the OhioHealth settlement, where regulators scrutinize contract provisions and business practices. Mediation will probably play a larger role in resolving disputes in the health care industry, and parties will need to be aware of the tax implications of such agreements.
Resources for Non-Experts
For non-experts, understanding business regulation and regulated industries can be daunting. The Consumer Privacy and Data Analytics Subcommittee of the ABA Business Law Section’s website provides resources, including a primer on data protection, to help non-experts learn more about these complex topics.
The primer, titled “Privacy Law 101 for Non-Experts,” is a useful resource for those looking to learn more about privacy law and its implications for businesses. It covers the basics of privacy law, including data collection, storage, and sharing, and provides guidance on compliance with relevant regulations.
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