Pennsylvania's Reading Health System Terminates Proposed Acquisition of Surgical Institute of Reading
Pennsylvania Attorney General Linda Kelly announced on Nov. 14 that, in conjunction with the FTC, the Commonwealth will challenge the proposed merger. Ms. Kelly said the sale of SIR to RHS would be bad for consumers because it would reduce competition among facilities.
Clint Matthews, the system's president and CEO, said in a statement, "We reach this conclusion with regret, because we believe the merger of these two strong, high-quality healthcare institutions clearly would have benefited the community."
SIR is physician-owned and opened its doors in 2007. It specializes in certain procedures, mostly orthopedic, spine, ENT and general surgeries. Ms. Kelly said SIR has consistently charged 30 to 40 percent less than Reading Hospital for many medical procedures, and the merger could potentially raise healthcare costs and add to RHS' already considerable negotiating leverage.
Related Articles on Transactions & Valuation:
New York's St. Mary's Hospitals to Become Completely Outpatient by 2023
Ambulatory Alliances Releases Free Webinar on How to Effectively Market Your ASC
Building a Spine Surgery Center: 5 Points From Dr. Richard Kube
© Copyright ASC COMMUNICATIONS 2015. 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.
New From Becker's ASC Review
Global ambulatory care services market expected to grow from 2015-2022: 4 things to knowRead Now
- Anesthesia technology degree program comes to Illinois
- Thousands of patients see data stolen from New Jersey hospital: 6 things to know
- The emotional impact of a medical error
- 12 California hospitals pay $775k in penalties from California Department of Public Health
- The biggest issues facing orthopedic surgeons today