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In the Matter of Evanston Northwestern Healthcare Corp.

2005 F.T.C. LEXIS 146 (2005)

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In the Matter of Evanston Northwestern Healthcare Corp.

Federal Trade Commission
2005 F.T.C. LEXIS 146 (2005)

RW

Facts

Highland Park Hospital merged with two other hospitals in the Evanston, Illinois area to form Evanston Northwestern Healthcare Corporation (ENH) (defendant). Over the next four years, ENH raised healthcare prices significantly above the Evanston area’s premerger levels. ENH raised its rates faster and higher than did comparable healthcare networks for comparable services. The complaint counsel (plaintiff) for the Federal Trade Commission (FTC) assembled evidence that only ENH’s concentrated market power enabled ENH to charge such rates. The complaint counsel lodged a formal FTC complaint accusing ENH of violating § 7 of the Clayton Act. In its defense, ENH demonstrated that it had upgraded some hospital facilities. ENH also presented questionable evidence that some of its prices were below market rates.

Rule of Law

Issue

Holding and Reasoning (Bright, J.)

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