Dive Brief:
- There are now 11 states fighting alongside the FTC to prevent the consolidation of Chicago-area health systems Advocate Health Care and NorthShore University HealthSystem, Modern Healthcare reported.
- The states are asking for a federal appeals court to keep the merger on hold to allow the FTC sufficient opportunity to hold administrative hearings on the issue.
- The states filed an amicus brief last week in which they argued a lower court's earlier decision in favor of the health systems would set a problematic precedent across the U.S., paving the way for continued consolidation even where it reduces healthcare competition.
Dive Insight:
The big debate centers around how to define the geographic market of the pair and consider the impact of a merger on the region. The case is being watched closely by health systems around the U.S. due to it being one of the largest deals to be challenged by the FTC in recent years, Modern Healthcare noted.
As it stands, the deal was greenlighted last month but halted almost immediately following an injunction request by FTC antitrust regulators, leaving the deal in limbo while it is heard by the U.S. Court of Appeals.
The states supporting the FTC are Connecticut, Idaho, Iowa, Maine, Massachusetts, Minnesota, Mississippi, Montana, Oregon, Pennsylvania, and Washington.
Advocate and NorthShore had previously argued the FTC left out important competitors in defining its geographic market and U.S. District Judge Jorge Alonso had agreed, stating the FTC's criteria were flawed. The states, meanwhile, argued Alonso did not factor in whether an insurer would pay more if the two systems merged, instead focusing incorrectly on patient's willingness to travel farther for other options.
Following the FTC's appeal of that decision, arguments are slated to be heard August 19.
Thirty-three economists also filed an amicus brief supporting the FTC, according to Modern Healthcare, noting anyone wishing to file in support of the health systems is expected to do so next month once Advocate and NorthShore file their brief.