FTC finds ‘substantial risk’ in Wellmont, MSHA merger

In a public comment to the Tennessee Department of Health, the Federal Trade Commission expressed concern over the proposed merger between Kingsport, Tenn.-based Wellmont Health and Johnson City, Tenn.-based Mountain States Health Alliance, stating the merger represents “substantial risk of serious competitive and consumer harm.”

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The FTC pointed to evidence of harm gathered during a year-long assessment of the proposed merger. The data, the agency argued, showed that the competitive and consumer harm the merger would create would not “be outweighed by any potential benefits of the merger, nor would it be eliminated or effectively mitigated by regulating the combined entity’s post-merger conduct.”

A representative from the agency voiced similar concerns during a public hearing Nov. 21 in Tennessee. It was the third time the agency publicly declared its opposition to the merger.

The Southwest Virginia Health Authority approved the merger earlier this month.

State officials in Tennessee have until Jan. 12 to issue a decision.

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