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Court strikes down OH hospital merger

The Wall Street Journal, April 23, 2014
A federal appeals court on Tuesday ordered a major health system in northwest Ohio to unwind its merger with a local hospital on antitrust grounds. The unanimous decision by a three-judge panel of the Sixth U.S. Circuit Court of Appeals in Cincinnati comes amid growing concerns about hospital mergers and their effect on prices against the backdrop of America's health-care upheaval. The dispute began in 2010 when ProMedica, a nonprofit health-care system based in Toledo, signed a merger agreement with St. Luke's, a community hospital. Months later the Federal Trade Commission moved to block the merger under an antitrust statute, claiming the deal would allow ProMedica to jack up prices for in-patient services.[Subscription Required]