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Healthcare and life sciences companies operate under the most difficult circumstances. They face pressure to drive innovation and growth while navigating intense government oversight and stakeholder scrutiny. Our lawyers guide you through critical business decisions, complex regulatory frameworks, and evolving market pressures – so you can lead transformation in a highly regulated environment.
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State of the states: Avoiding healthcare transaction pitfalls in 2026
Healthcare transaction oversight is growing at both the state and federal levels. We’ve analyzed the current landscape to outline how sponsors and platform operators should consider approaching transaction planning in 2026 and beyond.
State oversight of healthcare transactions continues to expand in 2026. Across multiple jurisdictions, regulators are adopting advance notice regimes, increasing ownership disclosure expectations, and implementing merger-notification frameworks modeled on the Uniform Antitrust Pre-Merger Notification Act.
These developments reflect a growing interest in the effects of healthcare consolidation, particularly transactions involving private equity sponsors, management services organization (MSO)-backed provider platforms, and multi-site healthcare operators.
- Geisinger Health, a $10 billion health provider, health insurer, and medical school, in its acquisition by Kaiser. The transaction is the first major acquisition of a new affiliate of Kaiser known as Risant Health, a nonprofit landmark initiative to promote better health outcomes and increase access to affordable care.
- Northwell Health, a not-for-profit hospital and health system and New York’s largest healthcare provider and private employer, in its affiliation with Nuvance Health, a not-for-profit health system comprised of seven hospitals and healthcare providers across New York’s Hudson Valley and Western Connecticut. As a result of the affiliation, Northwell Health now encompasses 28 hospitals and over 1,000 healthcare sites across New York and Connecticut.
- CVS Health as health regulatory counsel in two strategic acquisitions of leading companies in the healthcare sector: (a) the closing of its $10.6 billion acquisition of Oak Street Health, a leading multi-payor, value-based primary care company, and (b) its $8 billion definitive agreement to acquire Signify Health, Inc., a leader in health risk assessments, value-based care, and provider enablement.
There are many. Using protected health information to train AI models could run afoul of HIPAA, AI-generated outputs could raise intellectual property questions, and overstating vendor marketing claims could expose organizations to enforcement actions.
Federal and state regulators are actively applying a variety of existing frameworks to govern AI use – including medical device oversight, consumer protection law, and emerging state legislation on algorithmic discrimination and patient disclosure. In practice, that means that health systems must navigate layered, fragmented oversight without a single governing statute.
Related: Health AI at a crossroads: Governance and transparency in 2026