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BREAKING: FTC Wins Appeal in ProMedica Case

The Federal Trade Commission extended its recent winning streak in healthcare cases Tuesday when a federal appeals court agreed that a 2010 hospital acquisition by Ohio’s ProMedica system was illegal.

In a 22-page opinion, a unanimous panel of judges at the 6th U.S. Circuit Court of Appeals in Cincinnati wrote that the FTC correctly decided that Toledo-based ProMedica was extremely likely to illegally increase prices after buying the suburban St. Luke’s Hospital in Maumee, a well-to-do corner of Lucas County, Ohio.

The court upheld an earlier order from the FTC that ProMedica must divest St. Luke’s to another buyer. The judges ruled none of ProMedica’s arguments against the order were strong enough to overturn it.

“We are extremely disappointed by today’s decision and intend to appeal,” ProMedica said in a statement. “We are committed to exhausting all of our legal options.”

The decision has been closely watched because it’s likely to be appealed to the U.S. Supreme Court in an era when government regulators including the FTC are taking an increasingly aggressive stance in hospital-merger cases.

Read the full report here.

Contact Steven Cosby with questions or to request more information and to schedule a healthcare plan evaluation, savings analysis or group plan solution for your company.

BREAKING: FTC Wins Appeal in ProMedica Case

The Federal Trade Commission extended its recent winning streak in healthcare cases Tuesday when a federal appeals court agreed that a 2010 hospital acquisition by Ohio’s ProMedica system was illegal.

In a 22-page opinion, a unanimous panel of judges at the 6th U.S. Circuit Court of Appeals in Cincinnati wrote that the FTC correctly decided that Toledo-based ProMedica was extremely likely to illegally increase prices after buying the suburban St. Luke’s Hospital in Maumee, a well-to-do corner of Lucas County, Ohio.

The court upheld an earlier order from the FTC that ProMedica must divest St. Luke’s to another buyer. The judges ruled none of ProMedica’s arguments against the order were strong enough to overturn it.

“We are extremely disappointed by today’s decision and intend to appeal,” ProMedica said in a statement. “We are committed to exhausting all of our legal options.”

The decision has been closely watched because it’s likely to be appealed to the U.S. Supreme Court in an era when government regulators including the FTC are taking an increasingly aggressive stance in hospital-merger cases.

Read the full report here.

Contact Steven Cosby with questions or to request more information and to schedule a healthcare plan evaluation, savings analysis or group plan solution for your company.