Rockford Rerun: FTC Sues to Stop Hospital Merger

By Karen S. Lovitch

My colleagues Christi Braun, Rob Kidwell, and Bruce Sokler have authored a health care antitrust advisory detailing an administrative complaint and a district court complaint recently filed by the FTC to block OSF Healthcare System’s proposed acquisition of Rockford Health System.  The FTC sees the merger as a rerun of the government’s successful challenge of a similar hospital merger in Rockford in 1989.  While riding the coattails of those earlier decisions, the new complaint also challenges the acquisition’s impact on primary care physician services.  The FTC alleges that, in Rockford, payors need two of the three hospitals in their networks and contends that the acquisition would eliminate the ability to hold prices down through playing the three hospitals off against one another.  I encourage you to read the advisory, which provides further details and interesting insights on this notable health care antitrust development.

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    Karen S. Lovitch

    Chair, Health Law Practice & Chair, Health Care Enforcement Defense Practice

    Karen advises industry clients on regulatory, transactional, operational, and enforcement matters. She has deep experience handling FCA investigations and qui tam litigation for laboratories and diagnostics companies.