The FTC withdrew its complaint last week after West Virginia enacted legislation, known as a cooperative agreement law, allowing for state oversight of healthcare mergers. Similar legislation has been enacted in Tennessee, essentially allowing hospital mergers to avoid federal antitrust review.
Although the FTC chose to drop its complaint challenging the merger in West Virginia, that doesn’t mean the commission will take the same approach in future cases. “We will continue to vigorously investigate and, where appropriate, challenge anticompetitive mergers in the courts and, if necessary, through state cooperative agreement processes,” the FTC said.
The commission’s harsh words could signal trouble for the proposed merger between Kingsport, Tenn.-based Wellmont Health System and Johnson City, Tenn.-based Mountain States Health Alliance. However, the organizations are free to move forward with their merger plan for now, as the FTC has not formally challenged the transaction.
More issues about transactions and valuations:
Ministry Door County Medical Center, Hospital Sisters Health System pursue formal partnership
NYU Langone, Winthrop-University Hospital to begin merger talks
