Dive Brief:
- St. Luke's Health System in Idaho has won permission from a federal appeals court to keep running Nampa-based Saltzer Medical Group while fighting an earlier ruling that the Saltzer acquisition violated antitrust laws.
- Late last year, a district judge had ruled in favor of the FTC and its co-plaintiffs—which included two providers—agreeing that St. Luke's buyout of Saltzer gave the system an unfair advantage.
- The acquisition of Saltzer, the state's largest independent physician practice, gave St. Luke's nearly 80% of Nampa's primary care market, according to the plaintiffs.
Dive Insight:
As might be expected, St. Luke's has argued that only good would come of the Saltzer acquisition, including more stable healthcare prices, added jobs for doctors and rewards for care efficiency, all of which would save money on care. The plaintiffs, meanwhile, contend that as the case winds its way through the court system, Saltzer physicians haven't been referring patients to St. Luke's competitors.
For the time being, St. Luke's has an opportunity to demonstrate that the acquisition of Saltzer really is having the beneficial effects it promised. And it could be a long time, as federal appeals cases can take years to be resolved. The history of healthcare antitrust cases is not filled with institutions which have successfully demonstrated such benefits, but there's always the chance this one will be different.