OSF Healthcare, Rockford Health Cancel Merger

OSF Healthcare in Peoria, Ill., and Rockford (Ill.) Health have canceled plans to merge, with “great reluctance,” citing the preliminary injunction granted to halt the deal and the prospect of a two-year legal battle with the Federal Trade Commission as deterrents to pursuing the merger.

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The deal would have reduced the number of acute-care hospitals in Rockford from three to two and Rockford Health argued the consolidation would improve efficiency and quality of care, in line with goals set by the Patient Protection and Affordable Care Act. The FTC challenged the merger claiming the reduction in competition in the Rockford area would lead to higher costs.

On April 5, U.S. District Judge Frederick Kapala granted the FTC’s request for a temporary injunction, pending an administrative trial in Washington, D.C. That trial was set for April 17.

According to the report, both organizations will explore other options to bring more efficient, cost-effective and quality care to the Rockford community.

More Articles on the OSF, Rockford Health Merger:

FTC Wins Preliminary Injunction to Stop OSF, Rockford Health Merger
Hearing on FTC’s Challenge of Rockford Health, OSF Merger Begins
OSF Healthcare, Rockford Health Plan to Appeal FTC’s Challenge Against Acquisition
FTC Challenging OSF HealthCare’s Acquisition of Rockford Health

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