Antitrust Law Daily Wrap Up, ANTITRUST NEWS: FTC seeks comments on Community Health System’s application to sell Riverview Regional Medical Center to Prime Healthcare, (Dec 9, 2014)

By Linda O’Brien, J.D., LL.M.

The FTC is seeking public comments on an application by Community Health Systems (CHS) to approve the sale of Riverview Regional Medical Center to Prime Healthcare, the agency announced today.

CHS is the second largest operator of hospitals in the United States. In July 2013, CHS agreed to acquire Health Management Associates (HMA), an operator of 71 hospitals in 15 states. In its complaint (In the Matter of Community Healthcare Systems, Inc., File No. 131-0202), the FTC charged that the combination would likely substantially lessen competition for general acute care (GAC) inpatient services sold to commercial health plans and provided to commercially insured patients in two local markets: (1) Etowah County, including the city of Gadsden, Alabama; and (2) Darlington County, South Carolina.

The divestiture is required under the FTC’s April 2014 final order settling the charges that the acquisition would be anticompetitive in the Gadsden market.

In its application, CHS is seeking FTC approval to sell Riverview Regional Medical Center to Prime Healthcare. CHS stated that the divestiture will ensure the continuation of the medical center as an ongoing acute care hospital and Prime is a qualified and viable purchaser as a highly regarded operator of 23 acute care hospitals.

Public comments may be submitted until January 8, 2015. Written comments should be submitted to the FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. Comments can also be submitted electronically.

Companies: Community Healthcare Systems, Inc.; Health Management Associates, Inc.

News: Antitrust FederalTradeCommissionNews