The Federal Trade Commission (FTC) has asked Texas not to approve mergers between Shannon Medical Center and Community Hospital.
The FTC’s position is that the merger of San Angelo’s hospitals will lead to a loss of competition, resulting in higher prices and harming consumers.
The commission made similar arguments for the proposed Hendrick’s acquisition of Abilene Regional.
Community Health Systems announced Monday, April 20, 2020 that a subsidiary of the company has signed a definitive agreement to sell 171-bed San Angelo Community Medical Center (SPAC) in San Angelo and its associated assets to subsidiaries of Shannon Health System. The company later announced the proposed merger of 231-bed Abilene Regional Medical Center to Abilene-based Hendrick Health System.
Changes to Texas state law in 2019 opened a pathway for the merger of the hospitals by trading federal oversight for state oversight, a move supported by the CEOs of Shannon and Hendrick during testimony they gave to the state’s Public Health Committee on April 3, 2019.
The San Francisco-based firm wanted to access the public market faster and with more certainty, worried the US presidential election and the second wave of coronavirus could cast a shadow on its growth, according to a person familiar with the discussions. In a SPAC deal, the funds raised by the company are committed upfront.
Full Content: Bloomberg
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
EU Extends Support for Farms and Fisheries Amid Market Disruptions
May 5, 2024 by
CPI
Sony and Apollo Bid $26 Billion for Paramount Acquisition
May 5, 2024 by
CPI
Goldman Sachs Resolves Decade-Old Metal-Rigging Class Action Lawsuit
May 5, 2024 by
CPI
Italian Antitrust Ruling Puts Halt on Intesa Sanpaolo’s Fintech Ambitions
May 5, 2024 by
CPI
Google Antitrust Case: Closing Arguments Conclude
May 5, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI