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ProMedica Suggests Separate Panel for Payor Rates to Ease FTC Concerns

Toledo, Ohio-based ProMedica is proposing the formation of a separate team to negotiate insurer contracts for its merger partner, St. Luke's Hospital, in hopes to alleviate regulatory concerns, according to a Toledo Blade report.

ProMedica acquired control of St. Luke's in Maumee, Ohio, in Aug. 2010. The hospital and ProMedica agreed to refrain from certain actions while the Federal Trade Commission investigated the deal. Regulators began to look into ProMedica's merger with St. Luke's more than a year ago, and in March, the FTC received a preliminary injunction in U.S. District Court in Toledo so the partners couldn't fully join.

The FTC has argued that hospital prices could rise more than 56 percent at St. Luke's and nearly 11 percent at other ProMedica hospitals if the deal is allowed. They say the merger is anti-competitive and want ProMedica to divest St. Luke's to an approved acquirer, according to the Toledo Blade report.

ProMedica has suggested a conduct remedy where a separate team would negotiate payor rates for St. Luke's. The relationship would be similar to one the FTC used a few years ago to settle its case with Evanston Northwestern Healthcare in Illinois, where Highland Park Hospital has a separate negotiating team from Evanston and Glenbrook hospitals.

Related Articles on Hospital Transactions and the FTC:

Georgia's Phoebe Putney, FTC Make Oral Arguments in Appeal Over Merger
FTC Approves HMA's Acquisition of Cincinnati's Catholic Health Partners Subsidiary
FTC Clears Pending 3-System Merger in Kentucky


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