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US: ProMedica feud with FTC inches closer to SCOTUS

By  |  June 20, 2014

The Federal Trade Commission’s antitrust lawsuit against ProMedica’s acquisition of St. Luke’s Hospital has come closer to reaching the Supreme Court as ProMedica has appealed an earlier ruling in the case to the 6th US Circuit Court of Appeals.

A three-judge panel sided with federal regulators last April when it decided ProMedica must divest St. Luke’s, acquired in 2010 but found to reduce competition in the area. The FTC found ProMedica secured more than 50 percent of the market for primary and secondary services in some areas, and up to 80 percent of the obstetrical services in some regions.

But in its appeal, ProMedica said the panel relied on a “flawed approach” to its decision, which found a “strong correlation” between ProMedica’s prices and its market share.

”It was assuming causation without any proof of causation,” ProMedica argued. The healthcare company is now seeking a rehearing of the case.

Full content: Modern Healthcare

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