FTC Thwarted in Effort to Block Health System Merger May Yield More Mergers

The Federal Trade Commission was dealt a major blow this Tuesday when Judge Jorge L. Alfonso of the Federal District Court for the Northern District of Illinois, Eastern Division ruled that the proposed merger of Advocate Health Care and NorthShore University HealthSystem could proceed, rejecting the FTC’s request for a preliminary injunction. The proposed deal would yield a 16-hospital system and serve a staggering 3 million patients a year. The FTC argued that the combined health systems would dominate the North Shore market in Chicago resulting in patients paying higher prices for medical care while receiving lower-quality care. The hospitals countered, arguing that hospitals are now being held more accountable for the cost of care for patients. Additionally, the hospitals argued that the proposed merger keeps in line with the Federal Government’s goal to promote alliances among both hospitals and doctors.

Although the FTC has successfully managed to halt two hospitals mergers (one in West Virginia last November and one in Pennsylvania shortly thereafter) this decision may prove pivotal for mergers and acquisitions within the healthcare industry. The FTC loss may spark more deals among hospitals that previously feared pursuing a merger because of the FTC.

Doug McCullough | mccullough@dealfirm.com | http://dealfirm.com

With the assistance of Tiffany Auberбра интернет

Spread the word. Share this post!

Leave a comment