Government Healthcare Policy, Business and Technology

Court ruling may change M&A disclosure between health systems, unions

Modern Healthcare: Crozer Health must disclose part of its sale agreement with Prospect Medical Holdings to its nurses union, a federal appeals court ruled, invalidating the National Labor Relations Board's mandate to disclose the entire agreement.

When the Pennsylvania Association of Staff Nurses and Allied Professionals learned that Los Angeles-based Prospect planned to acquire the four-hospital system in Pennsylvania, the union petitioned for a full copy of the definitive agreement to learn how it would impact the employees it represents. The 3rd U.S. Circuit Court of Appeals, in a 2-1 vote, granted partial access to the agreement after finding that Crozer violated federal law by not disclosing parts of it, but also that the request for the entire document was overreaching.

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