Other expanding hospital chains will be watching the Ohio/Michigan system ProMedica’s appeal to the U.S. Supreme Court to try to keep a hospital it acquired several years ago. A lower court had ruled that the purchase broke antitrust laws.
The Supreme Court filing follows an April ruling in which a federal appeals court sided with the Federal Trade Commission’s order to ProMedica to divest itself of St. Luke’s Hospital in Maumee, Ohio. The judges said the purchase, in reducing competition, would unfairly raises prices for patients and insurers. Kaiser Health news reported that ProMedica lawyers have argued that the appeals court was flawed in assuming that ”greater market share would lead to price increases. They also have said that selling the community hospital would lead to the hospital’s demise.”
Cambridge Management Group has reported on another important hospital antitrust case, in which a federal appeals court is considering Idaho-based St. Luke’s Health System’s acquisition of a physician group.