September 26, 2023


On February 3, 2023, the US Division of Justice’s (DOJ) Antitrust Division announced the withdrawal of three coverage statements associated to antitrust enforcement in healthcare. Though the withdrawn statements concentrate on healthcare, DOJ’s determination to withdraw these statements may have broad impacts throughout industries.

The three coverage statements, issued in 19931996, and 2011, relate to competitor collaboration and data sharing, and established “security zones” of actions shielded from antitrust scrutiny. The 1996 Statements of Antitrust Enforcement in Well being Care (1996 Statements) have been revised and expanded upon the 1993 Statements. Although ostensibly associated to healthcare, the steering has been relied upon by all industries and understood to cowl all method of competitively delicate data. Two of the security zones most frequently relied on by corporations relate to competitor exchanges of value and price data, and competitor joint buying preparations.

Data Exchanges

The security zone on data exchanges (Assertion 6 of the 1996 Statements) acknowledged that, on the whole, the companies wouldn’t problem an change of value or price data (e.g., worker compensation) if the next three situations have been met:

  1. The change is managed by a 3rd occasion (e.g., a commerce affiliation or advisor).
  2. The data is greater than three months outdated.
  3. The change has 5 or extra members contributing information, and no particular person participant’s information represents greater than 25% of any statistic; and no particular person participant’s information might be recognized.

Firms have relied on this security zone in conducting surveys and benchmarking associated to pricing, provide prices, and salaries. These surveys have served as essential compliance instruments. Organizations exempt from federal revenue tax usually use surveys to display truthful market worth compensation to safeguard in opposition to claims of personal inurement and personal profit. Equally, healthcare corporations routinely use benchmarking research to display truthful market worth compensation for compliance with fraud and abuse legal guidelines.

Group Buying Organizations

The security zone on joint buying preparations (Assertion 7 of the 1996 Statements) acknowledged that, on the whole, the companies wouldn’t problem joint buying preparations (e.g., group buying organizations (GPOs)) if the next two situations have been met:

  1. The purchases account for lower than 35% of the full gross sales of the bought services or products.
  2. The price of the services or products bought collectively accounts for lower than 20% of the members’ revenues.

DOJ cited adjustments within the healthcare panorama because the rationale for withdrawing these coverage statements, particularly indicating that the statements have been “overly permissive” on data sharing. In a speech the day earlier than DOJ’s announcement, Principal Deputy Assistant Legal professional Basic (DAAG) Doha Mekki acknowledged that the security zone elements “don’t think about the realities of a reworked trade” and “understate the antitrust dangers of opponents sharing competitively delicate data.” DAAG Mekki defined that:

  • Data exchanges managed by third events can have the identical anticompetitive results—and the usage of a 3rd occasion enhances anticompetitive results.
  • New algorithms and AI studying improve the aggressive worth of historic data (greater than three months outdated) for sure services.
  • 5 or extra members don’t assure that such an data change is not going to hurt competitors, particularly when the members exchanging the data collectively have a big share within the related market.

Thus, in line with DAAG Mekki, “sustaining the security zones could be like creating specs for audio cassette tapes and making use of them to digital streaming.” DOJ is worried that technological advances might enable corporations and third-party entities better capabilities to reverse engineer sure varieties of knowledge in ways in which facilitate coordination (e.g., utilizing AI studying or complicated algorithms to foretell particular person members’ future conduct primarily based on historic information, or disaggregate or unblind a person participant’s information).


Statements 8 and 9 of the 1996 Statements addressed doctor community joint ventures and multiprovider networks, generally often called unbiased apply associations (IPAs) and clinically built-in networks (CINs). These statements set forth broadly adopted ideas of considerable monetary threat sharing and scientific integration applications that, the place ample, served as a foundation for competing suppliers to collectively contract with payors underneath the extra favorable rule of cause normal of assessment. The 2011 Assertion of Antitrust Enforcement Coverage Relating to Accountable Care Organizations Collaborating within the Medicare Shared Financial savings Program (2011 ACO Assertion) offered that accountable care organizations (ACOs) taking part within the Medicare Shared Financial savings Program (MSSP) could be afforded rule of cause remedy if, within the industrial market, the ACO used the identical governance and management construction and scientific and administrative processes as for MSSP participation. This was a big profit to hybrid ACOs/CINs, because it eradicated the chance of economic actions being handled as a per se illegal price-fixing or market allocation agreements amongst opponents. Because of this, many well being programs and doctor teams relied on the 2011 ACO Assertion. This assurance now not exists.


The coverage statements and the security zones by no means had the pressure of legislation, however their withdrawal results in better uncertainty for corporations concerned in data exchanges and different competitor collaborations. Firms routinely depend on third-party research of historic information from a number of market members to judge methods to value their services and guarantee they’re setting aggressive costs, paying aggressive costs for inputs and provides, and providing aggressive compensation and advantages to their staff. The withdrawal of the statements removes clear steering on how to do that lawfully. Firms could be sensible to assessment their current data exchanges, with an emphasis on making certain that participation in data exchanges doesn’t facilitate coordination as a result of the data being exchanged might be disaggregated or unblinded to establish particular members’ information. The companies are more and more centered on competitors points associated to worker compensation and hiring (see the Federal Commerce Fee’s (FTC) proposed rule banning noncompete agreements, mentioned right here).

Regardless of DOJ’s motion, corporations can nonetheless change data—even with opponents. DOJ, nonetheless, is searching for to insert uncertainty round what sorts of exchanges are all the time cheap. Our view is that going ahead corporations ought to comply with the FTC’s 2014 recommendation shared in a weblog put up that suggested: “let cause be your information.” That weblog cited the FTC and DOJ’s 2000 Antitrust Pointers for Collaborations Amongst Opponents—which haven’t been withdrawn—which defined that reasonableness “relies on the character of knowledge” shared:

  • The sharing of knowledge on value, output, prices, or strategic plans is extra prone to increase aggressive issues than the sharing of much less delicate data.
  • The sharing of knowledge on present and future plans is extra prone to increase aggressive issues than the sharing of historic data.
  • The sharing of particular person firm information is extra prone to increase concern than the sharing of aggregated information that does establish particular person corporations.

In our view, the trail ahead is to make use of the withdrawn “security zones” as a place to begin for assessing whether or not the information-sharing protocols are cheap in mild of potential authorities issues. Firms, subsequently, with the help of antitrust counsel, ought to take time to reassess their information-sharing protocols to think about the reasonableness of these protocols contemplating the character of the data shared and the enterprise objective of that association. Heightened focus must be given to the usage of data shared or acquired and the way it may impression pricing or compensation selections.