Chicago judge rejects FTC claims that the merged health system would stifle competition and violate antitrust laws.
A federal judge on Tuesday cleared the way for a merger of two of Chicago's biggest health systems.
U.S. District Judge Jorge Alonso rejected the Federal Trade Commission's bid to block the merger of Advocate Health Care and NorthShore University Health System.
In a six-day hearing last month, FTC lawyers had argued that the proposed merged system, to be called Advocate NorthShore Health Partners, would enjoy a near monopoly that would stifle competition and result in higher costs for healthcare consumers.
The FTC had sought an injunction to stop the merger so it could hear the issue in an administrative court.
In a brief statement, Debbie Feinstein, director of the FTC's Bureau of Competition, said: "The Court's ruling is disappointing and we will be considering our options."
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Alonso's full ruling remains under seal because of "competitively sensitive information," but a public version will be released later this week, the judge wrote.
Executives from the two health systems were clearly pleased by the ruling.
"Judge Alonso's decision reaffirmed what we have wholeheartedly believed since day one—this merger is a big win for consumers and for healthcare in our country as the shift to value takes hold," Advocate CEO and President Jim Skogsbergh said in prepared remarks.
"We look forward to rolling up our sleeves and getting to work together to deliver on our commitment of making healthcare more affordable while raising the standard of care."
NorthShore President and CEO Mark Neaman said that by "bringing together our two very strong and complementary institutions we are creating a patient-centered 'system of systems' that will deliver exceptional care and unprecedented access for those who matter most–our patients."
If finalized, ANHP would serve more than 3 million patients annually, making it the 11th largest not-for-profit health care system in the United States.
Skogsbergh and Neaman will be co-CEOs of ANHP for a designated time. The ANHP Board of Directors will be comprised of an equal number of members from both Advocate and NorthShore. The organizations are consolidating financial statements.
Advocate and NorthShore first announced the merger in September 2014. After a 15-month review, the FTC opposed the merger in December 2015 setting the stage for a federal court hearing this spring.