Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: W. Va. bill attempts to thwart FTC’s challenge to hospital merger, (Feb 19, 2016)

By Greg Hammond, J.D.

West Virginia Senator Robert Plymale has introduced legislation to the state senate that seeks to retain control within the state of how to best allocate health care resources. The legislation comes after the FTC has taken action to block the proposed merger of two West Virginia hospitals: Cabell Huntington Hospital and St. Mary’s Medical Center (In the Matter of Cabell Huntington Hospital, Inc., File No. 141 0218, Dkt. 9366).

“It is the purpose of the regulation to allow the state to retain control within the state of how best to allocate our health care resources, including location of health care facilities,” Senate Bill 609 states. “Moreover, the Legislature recognizes that it is the responsibility of the state to provide regulation over hospitals and health care services in this state to ensure quality health care to our citizens. This is a state and local concern and the state is best situate[d] to define the manner in which services should be delivered to our communities.”

The FTC asserts that Cabell’s proposed acquisition of St. Mary’s would establish a dominant firm with near monopoly power in the general acute care inpatient hospital services and outpatient surgical services markets in various counties in West Virginia and Ohio. As a result, the FTC claims that the deal would likely lead to increased prices and lower quality of care.

Companies: Cabell Huntington Hospital, Inc.; Pallottine Health Services, Inc.; St. Mary’s Medical Center, Inc.

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