Morning Briefing
Summaries of health policy coverage from major news organizations
Federal Judge In Chicago Refuses FTC Request To Block Health System Merger
EDTA judge delivered the Federal Trade Commission a major setback Tuesday in one of its biggest hospital cases in years, and experts say the decision could embolden even more hospitals to consolidate. The federal judge in Chicago declined to grant the FTC a preliminary injunction to temporarily stop a merger between Downers Grove, Ill.-based Advocate Health Care and Evanston, Ill.-based NorthShore University HealthSystem. (Schencker, 6/14)
Judge [Jorge] Alonso said the FTC hadn鈥檛 shown it would succeed in proving the hospital merger was anticompetitive. The judge, who held a six-day court hearing in April, in an order didn鈥檛 elaborate on the reasons for his decision. His full written ruling wasn鈥檛 immediately made public because it contains confidential business information. (Kendall, 6/14)
Last December, the F.T.C. sought to prevent the merger, arguing that the 16-hospital system would dominate the North Shore area of Chicago. Federal officials said the combination could result in people there paying higher prices for medical care and receiving lower-quality care. But the hospitals justified the merger by pointing to the major changes occurring in health care, including health systems being held more accountable for the overall cost of care for their patients. Hospital executives said the proposed merger was in keeping with the federal government鈥檚 goal of promoting alliances among hospitals and doctors so they could better coordinate care and improve quality while reducing prices. (Abelson, 6/14)
