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US: FTC scores win against healthcare consolidation

By  |  January 26, 2014

The Federal Trade Commission has successfully fought a controversial buyout of Idaho’s largest independent doctors group by the state’s healthcare system as a federal judge ruled Friday that the merger is indeed anticompetitive and must be reversed.

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    As the FTC has increased its scrutiny of healthcare deals, reports say the win is a crucial victory for the regulator as the case tested its ability to fight mergers in the industry.

    Idaho-based St. Luke’s Health System acquired Saltzer Medical Group in 2012, sparking concern within the FTC over the merger’s effects on primary care competition. The acquisition, the regulator said, would threaten higher prices from health plans, therefore raising consumers’ insurance costs.

    St. Luke’s, however, argued that the buyout would propel 2010 federal legislation to streamline the nation’s healthcare industry.

    US District Judge B. Lynn Winmill acknowledged St. Luke’s argument but ruled in favor of the FTC; the judge’s decision was subsequently applauded by FTC Commissioner Edith Ramirez.

    Full Content: Wall Street Journal

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