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Judge Sides With FTC; Says ProMedica, St. Luke's Partnership is Anti-Competitive

An administrative judge has upheld an FTC ruling that a partnership between St. Luke's Hospital in Maumee, Ohio, and Toledo, Ohio-based ProMedica is anti-competitive, according to a Toledo Blade report.

ProMedica said it will appeal the decision and that St. Luke's will remain part of ProMedica through that appeals process. It will first appeal to the FTC. If that is not successful, it can take its appeal to the 6th Circuit Court of Appeals.

ProMedica and St. Luke's formed the partnership in 2010. The FTC argues that it could increase hospital rates by more than 56 percent at St. Luke's and roughly 11 percent at other ProMedica hospitals. If the FTC wins, it wants divesture to an approved acquirer within six months of the final decision.

ProMedica, which includes 11 hospitals, has said the partnership is not anti-competitive and that the model the FTC used to calculate price increases is flawed, according to the report.

Related Articles on ProMedica and St. Luke's Hospital:

FTC Drops Request for Restraining Order on ProMedica, St. Luke's Merger
FTC Receives Preliminary Injunction Against St. Luke's Merger With ProMedica
FTC Investigates Fine Line Between Hospital Consolidation and Anti-Competition

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