IBM's Latest Healthcare Acquisition May Not Happen

Summary

• Regulators, courts and privacy advocates should take a close glance at the intended IBM purchase of Truven because it consolidates the greatest repository of healthcare data anywhere.


• How the information will be utilized and safeguarded from cyber breaches is a primary question.


• The U.S. Supreme Court ruled on the day of March 1 against Vermont's gathering of data from insurance policies.


• IBM may be making an oligopoly of healthcare data that will inhibit competition.

Investors should temper their enthusiasm about IBM's deal to achieve Truven Health Analytics until regulatory approvals are secured. IBM is no stranger to antitrust laws, which are meant to stop the consolidation of firms into oligopolies. While antitrust regulators have not vigorously enforced these laws during recent administrations, IBM's acquisition of Truven merits a close look not merely by regulators at the Federal Trade Commission, but also by courts and privacy advocates concerned with the security of healthcare data.