M&A Roundup: KentuckyOne Health forms $1.4B JOA
The Federal Trade Commission and the Idaho Attorney General's Office began an investigation into St. Luke's actions under federal antitrust laws and Idaho's Competition Act late last year. The Idaho AG's Office has asked St. Luke's to hold off on the purchase of Saltzer until their investigation was complete. St Luke's recently stated its intent to close the deal. This has compelled Saint Alphonsus Health System to act.
The injunction papers allege the acquisition would seriously harm the two hospitals and healthcare in the community. "Our complaint further states that St. Luke's has a demonstrated pattern of cutting off referrals to nearby hospitals after it purchases physician groups like Saltzer Medical Group," the media release stated. "The injunction papers allege that this action would damage the ability of Saint Alphonsus Medical Center–Nampa to serve its long-held role of 'safety net' hospital for the community of Nampa."
Kansas regulators OK Coventry sale to Aetna
Kansas Insurance Commissioner Sandy Praeger has approved the sale of Coventry Health Care of Kansas to Aetna, her office announced. The action follows a public forum and a formal hearing conducted by the Kansas Insurance Department November 5 in Topeka.
However, the acquisition still has to be approved by regulatory authorities in 20 states. Aetna announced its agreement to purchase Coventry Health Care in a deal worth $7.3 billion on August 20.
According to KID statistics, Aetna had $57.7 million in premium sales in Kansas in 2011, and Coventry registered $187 million in Kansas premiums. Aetna provides health insurance to 18 million people nationwide, dental insurance for 13.6 million people, and has 8.7 million pharmacy benefits members. Nationally, Coventry has 3.8 million medical insurance policyholders and 1.5 million Medicare Part D policyholders.
John Commins is a senior editor with HealthLeaders Media.
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