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District Court blocks hospital acquisition of a physician practice, concluding that anticompetitive effects outweigh potential quality and efficiency gains from consolidation

Robert F. Leibenluft

Robert F. Leibenluft,

Washington, D.C.

Leigh Oliver

27 January 2014
In the first ever FTC-litigated challenge to a hospital system’s acquisition of a physician group, the U.S. District Court for Idaho ruled in favor of the plaintiffs (the FTC, Idaho Attorney General, and St. Alphonsus, a competing hospital system). The plaintiffs challenged St. Luke’s Health System’s acquisition of the Saltzer Medical Group, a 41-physician multi-specialty group, including 16 adult primary care physicians located in Nampa, Idaho. Among the key issues in the litigation were: geographic market definition, the likely impact on reimbursement rates, and whether the acquisition would enable a more integrated healthcare delivery system that would improve healthcare quality and efficiency.
District Court blocks hospital acquisition of a physician practice, concluding that anticompetitive effects outweigh potential quality and efficiency gains from consolidation

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Robert F. Leibenluft

Robert F. Leibenluft,

Washington, D.C.

Leigh Oliver

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