In the Matter of Evanston Northwestern Healthcare Corporation
Federal Trade Commission
Docket No. 9315 (F.T.C. August 2007)
Evanston Northwestern Healthcare Corporation (ENH) (defendant) merged with Highland Park Hospital (Highland) in 2000. ENH owned two other area hospitals at the time of the merger. Four years after the deal closed, the Federal Trade Commission (FTC) (plaintiff) challenged ENH’s acquisition of Highland under § 7 of the Clayton Act. Prior to and after the merger, ENH substantially raised its prices. Attorneys for ENH said documentation received as part of the Highland merger concluded that ENH was undercharging its patients. Opponents argued that ENH’s additional market power and leverage created by the merger was the impetus for the price increase. The Administrative Law Judge (ALJ) found that the merger violated the Clayton Act and ordered ENH to divest Highland.
Rule of Law
Holding and Reasoning (Majorus, Chairman)
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