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ProMedica Health System, Inc. v. Federal Trade Commission

United States Court of Appeals for the Sixth Circuit

749 F.3d 559 (2014)

Facts

In 2010, ProMedica Health System, Inc. (defendant) (ProMedica) merged with St. Luke’s Hospital. Prior to the merger, ProMedica was the largest of the four hospital systems in Lucas County, Ohio, and dominated 46.8 percent of the general acute-care market. After the merger, ProMedica dominated 50 percent of the general acute-care market for primary and secondary services and 80 percent for obstetrical (OB) services. Five months after the merger, the Federal Trade Commission (plaintiff) (FTC) filed an administrative complaint, alleging that ProMedica had engaged in anticompetitive behavior in violation of the Clayton Act. The administrative law judge (ALJ) found that the merger was likely to allow ProMedica to increase its prices above a competitive level and that there was no creation of efficiencies to offset the anticompetitive concerns. ProMedica was ordered to divest St. Luke’s. ProMedica appealed to the commission. The commission analyzed the competitive conditions of the merger by considering the effect the merger would have on primary services, secondary services, and OB services. After separately considering the services, the commission analyzed the Herfindahl-Hirschman Index (HHI) data and affirmed the ALJ. ProMedica appealed.

Rule of Law

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Issue

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Holding and Reasoning (Kethledge, J.)

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A "yes" or "no" answer to the question framed in the issue section;
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The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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