FTC urges Texas regulators to block CHS’ divestiture of 2 hospitals

More posts on health care market deals: Illinois system to join Northwestern MedicineFTCs obstacle of Jefferson-Einstein merger heads to court Sept. 14: What health system leaders should knowHospital M&An upgrade: 11 current offers.

© Copyright ASC COMMUNICATIONS 2020. Intrigued in LINKING to or REPRINTING this content? View our policies by clicking here.

In addition, the FTC argues that if the divestiture of San Angelo Community Medical Center to Shannon Health moves on, the combined organization will have a 62.3 percent market share of inpatient health center services and would have concentration numbers that “approach monopoly levels.”.
Read the complete letter here..

© Copyright ASC COMMUNICATIONS 2020. Intrigued in LINKING to or REPRINTING this material? View our policies by click on this link.

Particularly, if Hendrick Health System is enabled to purchase Abilene Regional, the combined organization would have an 85 percent market share of inpatient services in the region, the FTC stated..

Alia Paavola –
Tuesday, September 15th, 2020
Print|Email.

The Texas Health and Human Services Commission ultimately will approve or block the proposed deals as Texas carried out a law that shields the offers from federal oversight in exchange for state oversight.

In April, CHS announced its intent to sell the 231-bed Abilene (Texas) Regional Medical Center to Abilene-based Hendrick Health System and its 171-bed San Angelo (Texas) Community Medical Center to Shannon Health System in San Angelo..

” Hendrick completes strongly with Abilene Regional to be consisted of in health insurance networks and to attract patients. The proposed Hendrick merger would remove this competition and would likely result in increased costs and lowered quality and schedule of health care services in Midwest Texas,” the FTC wrote in the letter..

The Federal Trade Commission is advising Texas regulators to block Franklin, Tenn.-based Community Health Systems organized divestiture of 2 medical facilities in the state.

In a letter to the Texas commission, the FTC argues that if the offers are allowed to move on, the mixes would eliminate competition in the markets, resulting in greater costs and damaging customers.