ProMed­ica loses high-court bid, will di­vest con­tested hos­pi­tal

Modern Healthcare - - REGIONAL NEWS - —Lisa Schencker

The U.S. Supreme Court last week de­nied ProMed­ica’s re­quest to re­view a rul­ing that found the Ohio health sys­tem’s 2010 hos­pi­tal ac­qui­si­tion vi­o­lated an­titrust laws. The de­feat ended a nearly five-year battle with the Fed­eral Trade Com­mis­sion.

Toledo-based ProMed­ica said in a state­ment that the sys­tem and the fa­cil­ity it ac­quired, St. Luke’s Hos­pi­tal in Maumee, Ohio, will work to­gether over the next six months to de­velop a de­tailed di­vesti­ture plan to sub­mit to the FTC.

ProMed­ica had hoped the Supreme Court would hear the case and re­ject the 6th U.S. Cir­cuit Court of Ap­peals’ con­clu­sion that its merger with St. Luke’s was an­ti­com­pet­i­tive.

The case at­tracted na­tional at­ten­tion from health­care providers who are in­creas­ingly look­ing to ex­pand and con­sol­i­date through merg­ers and ac­qui­si­tions, which they say are nec­es­sary to de­liver more co­or­di­nated care, im­prove qual­ity and re­duce costs as man­dated un­der the Af­ford­able Care Act.

Legal ex­perts said it wasn’t sur­pris­ing the Supreme Court re­fused to hear the case, since it didn’t present any new legal is­sues. But they also said the de­ci­sion re­in­forces that providers look­ing to merge should be on alert for an­titrust con­cerns.

In a sep­a­rate an­nounce­ment last week, ProMed­ica said it is plan­ning the largest con­struc­tion project in its his­tory, a $350 mil­lion, 302-bed re­place­ment tower on the shared cam­pus of ProMed­ica Toledo Hos­pi­tal and ProMed­ica Toledo Chil­dren’s Hos­pi­tal. The 13-story tower, which will re­place a nearly 90-year-old fa­cil­ity, is ex­pected to open in 2019.

ProMed­ica will cre­ate a di­vesti­ture

plan for St. Luke’s Hos­pi­tal, above.

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