Thanks to an extension granted by a federal judge, Boise, Idaho-based St. Luke's Health System now has until May 1 to split from the medical group that triggered an antitrust case involving the Federal Trade Commission, according to the Idaho Statesman.
St. Luke's originally had a Dec. 10 deadline to divest Saltzer Medical Group in Nampa, Idaho. The FTC and Idaho Attorney General's office requested an extension last month, noting the divestiture process was on track but taking time.
The need to divest stems from a major antitrust case decided in early 2014. U.S. District Judge B. Lynn Winmill ruled that St. Luke's violated antitrust law when it acquired 40-physician Saltzer in 2012, one of the largest independent multispecialty groups in the state. In his decision, Judge Winmill said the combination of five-hospital St. Luke's with Saltzer resulted in the system owning 80 percent of the primary care physicians in Nampa. He ordered St. Luke's to fully divest itself of Saltzer's physicians and assets.
Two of St. Luke's competitors, Saint Alphonsus Health System and Treasure Valley Hospital, both in Boise, were also plaintiffs in the case. The healthcare providers filed suit first, but their suit was consolidated in March 2013 with that of the FTC and Idaho attorney general.
A St. Luke's trustee has since found a buyer for Saltzer, although court documents did not identify the potential buyer. The sale is expected to close by March 2017, with the divestiture being complete by the May 1 deadline.