Home-based care agencies should keep a close eye on developments made by the Biden administration when it comes to antitrust laws and non-compete agreements, according to industry insiders.
Partners and shareholders with the Polsinelli law firm detailed the latest updates within the Department of Justice (DOJ) on a webinar Thursday. They also covered how new partnerships between divisions in the federal government should promote competitive labor markets, not only in health care, but in the country at large.
One of the main focuses from the current administration include “no poach” clauses in franchise agreements.
In fact, the Federal Trade Commission (FTC) recently issued a civil investigative demand (CID) with an undisclosed home care provider, which Polsinelli shareholder Will Vail said should be noted by the industry.
“It’s pretty clear that the FTC doesn’t really understand home care, but it does seem that they want to learn, so this is definitely an example of why the industry has to be really careful,” Vail said. “I’m not saying that this company has done anything wrong, but the government is looking more into figuring out, ‘What is the state of play in this industry and how may it be violative of the antitrust laws?’”
This is another example of the federal government becoming more interested in the home care space following news that private equity scrutiny and more OIG audits could be on the horizon.
Vail also pointed to four owners and managers of home health...
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