Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Ohio hospital ProMedica divests former rival, (Jun 24, 2016)
Organizations Mentioned:ProMedica Health System, Inc. | St. Luke's Hospital
By Jody Coultas, J.D.
The FTC's successful challenge to Ohio-based hospital operator ProMedica Health System, Inc.’s consummated acquisition of St. Luke's Hospital in Toledo, Ohio, has resulted in the divesture of St. Luke’s, the FTC announced today.
ProMedica effectively acquired and took control of competitor St. Luke’s in August 2010. The FTC challenged the acquisition in 2011, claiming that the deal threatened to substantially lessen competition for critical health care services in Lucas County, Ohio. This diminished competition, according to the complaint, would stifle beneficial quality improvements and would result in significant increases in health care costs to local residents.
The Commission entered a final opinion and order in 2012, finding that the acquisition was anticompetitive and ordering that ProMedica divest St. Luke’s Hospital to an FTC-approved buyer within six months after the order becomes final and effective.
The U.S. Court of Appeals in Cincinnati held that the company's consummated acquisition of St. Luke's Hospital would adversely affect competition in violation of Section 7 of the Clayton Act.
A petition for certiorari, asking the Court to consider the FTC's successful challenge to Promedica’s acquisition of St. Luke's Hospital in Toledo was denied in May.
Following a public comment period, ProMedica divested St. Luke’s under the provisions of the FTC order. St. Luke’s will operate as an independent, standalone community hospital serving the Toledo, Ohio area.
Companies: ProMedica Health System, Inc.
News: AcquisitionsMergers