The Federal Trade Commission and the North Dakota Attorney General's Office issued their opening statements during court Oct. 30 in favor of a preliminary injunction to halt the proposed merger between Sioux Falls, S.D.-based Sanford Health and Bismarck, N.D.-based Mid Dakota Clinic, The Bismarck Tribune reports.
The four-day hearing in U.S. District Court began Monday morning and consisted of opening statements and testimonies by FTC witnesses, the report states.
During the proceedings, the FTC argued the proposed merger would lead Sanford and Mid Dakota Clinic to control a significant portion of the market for primary, pediatric, obstetrics and gynecology care, and general surgery. The agency also said the merger would give the health systems greater bargaining power and possibly lead to higher rates, increased premiums and higher out-of-pocket expenses for area residents, the report states.
A lawyer for the health systems stated rates would not increase because Fargo-based Blue Cross Blue Shield of North Dakota, the only major insurer in the area, sets rates rather than negotiating them, resulting in uniform pricing statewide, according to the report.
If the judge approves the injunction, the health systems will be required to hold off on pursuing the merger until a formal FTC hearing takes place Nov. 28 in Washington, D.C.
Sanford and Mid Dakota revealed plans to combine operations in June. The FTC filed a complaint to block the proposed combination days after the health systems' joint announcement.