FTC Challenges Reading Health System's Proposed Acquisition of Surgical Hospital
The FTC alleged that the combination of the two healthcare providers would substantially reduce competition in the area surrounding Reading, Pa., and lead to reduced quality and higher healthcare costs for the area's employers and residents.
The FTC, jointly with the Pennsylvania Attorney General, will file a complaint in federal district court next week, seeking a preliminary injunction to stop the deal pending an administrative trial. The FTC has also issued an administrative complaint, initiating a proceeding that will determine the legality of the transaction.
"The FTC is challenging this acquisition because it would lead to higher overall health care costs for employers and patients in the Reading area," said Bureau of Competition Director Richard Feinstein. "While SIR is not a full-service general acute-care hospital, it has injected important price and quality competition into the Reading area. That competition will be lost if this deal goes forward."
© Copyright ASC COMMUNICATIONS 2017. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.
To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.
- 5 things to know about Pres. Trump's executive order addressing the ACA
- Should Medicare allow total joints in ASCs? Q&A with Drs. Barry Waldman, Derek Johnson
- 84% of medical personnel are unsure of MACRA's requirements, survey finds: 3 takeaways
- Healthcare plan vanishes from WhiteHouse.gov after President Donald Trump takes oath
- Christ Hospital's dispute with St. Elizabeth Healthcare over $24M ASC may wage on for years