Reuters: CVS deal for Signify seen facing tough antitrust review

September 6, 2022 Media

CVS Health Corp’s (CVS.N) plan to buy healthcare services company Signify Health for about $8 billion will face a tough U.S. antitrust review even though the two companies do not compete directly in any markets, three experts said Tuesday.

High and rising healthcare prices, which have put even older drugs like insulin out of the reach of poorer people, have bedeviled U.S. presidential administrations determined to slow the rising costs. The Federal Trade Commission has long emphasized health deals in its antitrust reviews, and has continued that under new Chair Lina Khan.

The American Economic Liberties Project urged antitrust regulators to block the deal, calling it “dangerous.”

“Allowing CVS to expand its market dominance will only harm patients seeking personalized and quality care, take power away from physicians, and create even more data privacy concerns in healthcare,” said Sara Sirota, a policy analyst for the group in a statement.