Humana and Aetna deal confronts pushback in the Missouri

A spokesman for Aetna stated that the agencies are ready to explain remedies with Missouri regulators, noting that the case won’t affect the pending federal regulatory process at the Department of Justice.

"This order doesn’t impede the DOJ approval procedure. We are disappointed with the Missouri order but open to have a constructive dialogue with the state to address their uncertainties," stated T.J. Crawford, Aetna's head of media relations.

Previous month, Aetna and Humana stated they had gained 15 of 20 essential state approvals, and the companies' executives claim they still hope the deal to close in the second half of the year.

Elevation LLC analyst Ira Gorsky stated that while Missouri's order presents an obstacle for the insurers, it amounts to conditional approval of the deal. He does not see an issue for the companies to discuss the needed state concessions.

"It is the 1^st state approval to need the conditions," stated Gorsky. "I consider this is normal in the course of the procedure, and anyone that has been following this closely should have expected divestitures."

Report connects health care mergers and higher charges

Since the year 2009, the number of oncology practices linked with hospitals has doubled. And a latest report says that has driven costs up by 30% in places where there have been such tie-ups.

“This kind of consolidation increases spending,” claimed the University of Chicago’s Rena Conti, the author of the new report. “We don’t know whether this increased spending is actually going to translate into better quality or better access for cancer sufferers.”

For years, hospitals have discussed these deals could make better coordination, mitigate duplication and eradicate waste, lowering spending overall.

But this paper adds to a increasing body of literature that healthcare mergers are a critical concern.

Wharton’s Robert Town predicts if this keeps up, regulators such as the Federal Trade Commission and the Department of Justice will crack down.

“You are going to observe a meaningful affect on anti-trust policy,” Town claimed. “The FTC and DOJ are going to be less favorably disposed to these kinds of mergers.”