AHA Urges FTC to Broaden View During Hospital Transaction Regulatory Reviews

The Federal Trade Commission should consider indicators of a hospital’s future ability to operate when conducting regulatory reviews of mergers and acquisitions, according to an amicus brief filed by the American Hospital Association.

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AHA filed the brief with the 6th U.S. Circuit Court of Appeals in Cincinnati, which is set to review the FTC’s order to divest Toledo, Ohio-based ProMedica Health System’s acquisition of St. Luke’s Hospital in Maumee, Ohio. In a 4-0 decision announced in March, the FTC found the ProMedica and St. Luke’s merger to be illegal and anti-competitive. ProMedica and St. Luke’s appealed the decision, and the case is awaiting review.

According to the brief, a hospital’s ability to compete depends on it keeping pace with three challenges currently changing the healthcare landscape: reimbursement reductions and changes, electronic health records and limited access to capital.

“The law should not force hospitals to wait to merge until they are in imminent danger of closing their doors,” AHA wrote in the brief. “If hospitals must tumble through the downward spiral, both patients and the community will suffer from disruptions in the quality and consistency of care as hospital services slowly deteriorate.”

To read the full brief, click here.

More Articles on Hospital Transaction Regulatory Review:

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