Big Law in DC Sees Exponential Growth From Health Care Clients

Big Law in DC Sees Exponential Growth From Health Care Clients

April 28, 2023, The National Law Journal

Rujul Desai and Mike Labson were quoted by The National Law Journal in a piece about the law firms' increasing focus on the health care industry clients because of a spike in workflow stemming from the Inflation Reduction Act, increased federal scrutiny from federal agencies, and M&A and biotech work for biotech and health care companies.

“It’s been explosive in terms of the amount of work related to the Inflation Reduction Act that we’re seeing,” Rujul said, referring to the 2022 law that reformed prescription drug prices and extended Affordable Care Act subsidies, among other things, driving more work to law firms in D.C. this year.

Meanwhile, he continued, federal scrutiny from federal agencies such as the Federal Trade Commission and congressional oversight committees on vertical integration in health care, particularly concerning pharmacy benefit managers, has also increased the need for “sophisticated legal advice.”

“The pandemic certainly accelerated the need and importance of a life sciences and health care-deep expertise, especially for those that have significant Washington-based offices that can help navigate discussions with the FDA, CMS, and those agencies,” Rujul said. “Predating that, just the growth in the sector when you’ve got over 20 percent of the economy that’s driven by health care, it just requires a deep and growing bench of sophisticated lawyers across regulatory, transaction, and litigation practices.”

The National Law Journal also highlighted the opening of Covington’s Boston office and how firms have made geographical expansions to expand their capabilities within life sciences and health care.

The article explains how Covington lawyers have observed more interest from associates in their health care practice as well. “For the same reasons we’re seeing more and more work in this area, it’s attracting associate interest because it’s an exciting and important area,” Mike expressed. “It’s a big part of the economy. It’s a heavy focus of public policy officials and politicians.”