The Federal Trade Commission (FTC) was reviewing the acquisition of Emanuel Medical Center by Tenet Healthcare. The purpose of the review was to make sure that the acquisition would not be bad for consumers who use the hospital's services.
Meanwhile, the US$131 million acquisition deal was put on hold. The proposed acquisition would be Tenet's third hospital in the Northern San Joaquin Valley. The transaction would also be ending Emanuel's run as an independent community hospital for 96 years.
The close watch of the FTC on mergers in the health care industry was not something new. Last month, the FTC filed a complaint against the merger of two hospitals in Albany, Georgia. According to the FTC complaint, the merger would result in less competition and higher costs of patient services.
These recent cases were examples of issues on competition that the FTC thinks are important. The FTC's responsibility included enforcement of anti-trust laws.
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