Dive Brief:
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A U.S. District Court judge has ruled in favor of the Federal Trade Commission (FTC) and the state of Idaho in an antitrust case involving the merger of a hospital and medical group, agreeing that the acquisition violated antitrust regulations.
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The ruling orders St. Luke's Health System of Boise to unwind its acquisition of the Saltzer Medical group of Nampa, Idaho, which St. Luke's had acquired in December 2012.
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The ruling is a notable victory for St. Luke's biggest competitor, St. Alphonsus Medical Center, as well as other providers who objected to the deal.
Dive Insight:
With healthcare reform encouraging hospitals and doctors to work together, it won't be surprising if some go overboard and end up running afoul of the FTC. Building a collaborative but not anti-competitive organization will prove to be a very difficult balance to strike. But unfortunately for providers, fraud and abuse laws, antitrust considerations, Stark law rules and other laws and regulations that sometimes constrain collaboration haven't gone anywhere. They are just going to have to feel their way through it.