Methodist Le Bonheur’s $350 million acquisition of two Tenet Healthcare Corp.’s Memphis-area hospitals would increase costs and diminish competition, the Federal Trade Commission claimed in a lawsuit that aims to block the transaction. Memphis-based Methodist would control nearly 60% of the “already highly concentrated” Memphis acute-care market as one of three health systems—down from four—with hospitals in the area, according to the FTC. Methodist would be able to negotiate higher reimbursement rates with insurers, which would pass on those costs to employers and their employees in the form of higher premiums, copays, deductibles and other out-of-pocket expenses, regulators concluded.
Read the full article: FTC Sues to Stop Methodist Le Bonheur Buying 2 Tenet Hospitals //
Source: https://www.modernhealthcare.com/mergers-acquisitions/ftc-sues-stop-methodist-le-bonheur-buying-2-tenet-hospitals