Officials from the Federal Trade Commission expressed their concern over the potential merger between Kingsport, Tenn.-based Wellmont Health System and Johnson City, Tenn.-based Mountain States Health Alliance at public hearing Oct. 3, according to the Herald Courier.
While 19 of the 23 speakers at the hearing voiced their approval, deputy assistant director of the FTC Mark Seidman said the agency's initial review of the merger found it to be unfavorable for the community and the parties involved.
"Thus far, our investigation has led us to have significant concerns about the negative effects this merger of vigorous competitors could have on hospital pricing and quality of care on the residents of Southwest Virginia," said Mr. Seidman. "Together, the hospitals would have a dominant market share of inpatient services and significant market share on outpatient and physician specialty service lines in the 21-county area they wish to serve."
The Southwest Virginia Health Authority has until November to make its recommendation to the Virginia secretary of health. The Tennessee Department of Health is conducting its own review of the merger as well.
A second hearing is scheduled to take place Thursday in Bristol, Tenn.
Officials from both hospitals are confident the merger will be approved by the necessary authorities. Officials unveiled the name of the new organization to be formed once the merger is approved.