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FTC approves ProMedica's plan to spin off St. Luke’s as independent hospital

The Federal Trade Commission has approved Toledo, Ohio-based ProMedica Health System's plan to divest Maumee, Ohio-based St. Luke's Hospital.

With the plan approved, ProMedica will spin off St. Luke's and restore the hospital's independent status.

ProMedica and St. Luke's merged in August 2010. After the merger, ProMedica became the dominant hospital provider in Lucas County, Ohio, controlling more than 50 percent of the market for primary and secondary services and more than 80 percent of the market for obstetrical services.

Five months post-merger, the FTC challenged the transaction. Subsequently, an administrative law judge and later the FTC concluded the merger would adversely affect competition in Lucas County. As a result, the FTC ordered ProMedica to divest St. Luke's, as it concluded divestiture would be the best means to preserve competition.

The FTC's order was upheld by the 6th U.S. Circuit Court of Appeals, and the U.S. Supreme Court refused to hear the case.

In May, ProMedica filed its application with the FTC to divest St. Luke's. The FTC approved the divesture after a public comment period.

More articles on healthcare industry transactions:

Duke LifePoint eyes acquisition of Good Shepherd Health System
California approves St. Joseph-Providence merger, but with conditions

Texas Health Resources acquires Atrium Medical Center

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