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FTC Approves Forced Sale of Carilion Clinic Imaging Center

The Federal Trade Commission has approved the forced sale of an imaging center owned by Roanoke, Va.-based Carilion Clinic to Lake Forest, Calif.-based InSight Health Corp, according to a Roanoke Times report.

Carilion acquired the Center for Advanced Imaging, along with the Center for Surgical Excellence for $20 million in 2008. Soon after, the federal government said the purchase of the centers violated antitrust laws and hindered competition for medical imaging and surgical services in Roanoke.  

According to the FTC complaint, the purchase of the centers from Odyssey Imaging reduced competition in the area and increased healthcare prices by as much as 900 percent.

In a December 2009 settlement agreement with the FTC, Carilion agreed divest the centers with the FTC approving of the buyers. The FTC approved the sale of the Center for Surgical Excellence to a group of local physicians in March.

The divestiture raises a number of questions regarding the cost of care in integrated health networks and accountable care organizations. Critics claims these networks increase the cost of care by decreasing competition, but proponents argue they can cut costs by better coordinating care, according to a report by the Washington Post.

Read the Roanoke Times report on Carilion Clinic.

Read more coverage on the Carilion Clinic:

- Virginia Surgery Center Sale Receives FTC Green Light

-
FTC Issues Antitrust Complaint Over Carilion Clinic's Acquisition of Two Virginia Outpatient Clinics

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