Dive Brief:
- After a legal struggle, the FTC has won an appeals court battle to force Toledo, Ohio-based ProMedica to sell off Maumee, Ohio St. Luke's Hospital due to competitive violations.
- In August 2010, the two entities merged, and as a result ProMedica became Lucas County, Ohio's dominant hospital provider, controlling about 50% of the market for primary and secondary services, and more than 80% of the market for obstetrical services, the FTC concluded.
- Five months after the merger the FTC challenged it. ProMedica lost its initial legal struggle, went for an appeal and lost that as well. It intends to appeal again.
Dive Insight:
The FTC seems to be on a particularly aggressive path when it comes to addressing mergers it considers anticompetitive. For example, it recently required hospital chain Community Health Systems to divest hospitals and related assets in Alabama and South Carolina as condition of its planned $7.6 billion acquisition of rival chain Health Management Associates. If the FTC continues to pay close attention to hospital mergers, it could slow down the frenzied pace of acquisitions currently ongoing in the industry.