Case Details

Year Initiated/Committed

2011

Year Resolved

2011

Settlement Amount

n/a

Court

U.S. District Court for the Northern District of Ohio

Docket Number

3:11CV0047

Lead State

OH

Participating States

OH

Defendant(s)

Promedica Health System Inc.

Case Description

State and FTC sought preliminary injunction in connection with an already consummated acquisition by Promedica of St. Luke’s hospital. The complaint alleged that ProMedica’s acquisition of St. Luke’s eliminated significant price and non-price competition between the two firms in both the general acute-care and inpatient obstetrical markets in Lucas County. According to the complaint, the acquisition also vests ProMedica with the ability to demand higher rates for services performed at its other hospitals as well, because the addition of St. Luke’s to the ProMedica hospital system has made ProMedica a “must-have” system for health plans seeking to do business in Lucas County, as plans can no longer offer consumers a viable provider network without including ProMedica’s hospitals. The preliminary injunction was granted, and the FTC proceeded with an administrative proceeding.