The FTC, along with Virginia's attorney general, have announced that they plan to step in to block the planned the planned merger between a Virginia hospital chain and one of its current rivals. Inova Health System Foundation, which runs the largest hospital chain in Northern Virginia, would like to add Prince William Hospital of Manassas to its current roster of five hospitals. Prince William would get access to millions in capital, which execs say they need to keep up with their region's rapid growth.
However, the FTC and state attorney general contend that the merger would violate federal antitrust laws, arguing that eliminating the existing "robust competition" between Prince William and Inova could raise healthcare prices in the region. The FTC and Virginia AG Robert McDonnell plan to seek a temporary restraining order and preliminary injunction this week to stop the deal, which was supposed to close this month. If the order is granted, an administrative trial will follow.
To learn more about the planned deal, and FTC action:
- read this piece [1]Â from The Washington Post
Related Articles:
FTC scrutinizes PA hospital merger [2]
FTC resolves high-profile IL hospital antitrust dispute [3]
FTC uses leverage to step up antitrust scrutiny [4]
Economists call FTC's Evanston solution flawed [5]
Links:
[1] http://www.washingtonpost.com/wp-dyn/content/article/2008/05/09/AR2008050902640.html
[2] http://www.fiercehealthcare.com/story/ftc-scrutinizes-pa-hospital-merger/2007-03-29
[3] http://www.fiercehealthcare.com/story/ftc-resolves-high-profile-il-hospital-antitrust-dispute/2008-04-29
[4] http://www.fiercehealthcare.com/story/ftc-uses-leverage-step-antitrust-scrutiny/2007-09-25
[5] http://www.fiercehealthcare.com/story/economists-call-ftcs-evanston-solution-flawed/2007-10-24?utm_medium=rss&utm_source=healthcare_incentive