LCMC notches early win in FTC merger battle

LCMC Well being has secured an early win in its authorized battle in opposition to the Federal Commerce Fee after a federal choose in Washington, D.C., dominated that the case must be heard in a federal court docket in Louisiana, nola.com reported Might 25.

In April, LCMC and the FTC filed lawsuits in federal courts in Louisiana and the District of Columbia, respectively. All sides fought for the case to be heard in its personal jurisdiction, with LCMC popping out on high.

“There’s a important native curiosity within the state hospital merger approval course of in Louisiana and the way it bears on the enforcement of the antitrust legal guidelines with respect to hospital within the state,” U.S. District Choose Amy Berman Jackson mentioned in a Might 23 ruling.

The antitrust case facilities round whether or not or not LCMC ought to have sought federal approval for its $150 million acquisition of three Louisiana hospitals from Nashville, Tenn.based mostly HCA Healthcare in January.

The FTC had ordered LCMC to halt the acquisition whereas it performed a overview, however the Louisiana legislature and state legal professional normal had “expressly and unequivocally approved” the deal to undergo, in keeping with court docket paperwork obtained by Becker’s.

Louisiana is one in every of about 20 states that provides the state the authority to greenlight hospital mergers beneath the certificate of public advantage course of, in keeping with nola.com. Due to this, LCMC argues in court docket paperwork that the acquisition is “indisputably immune” from federal antitrust legal guidelines.

“We wholeheartedly agree with the court docket’s motion to switch this to Louisiana, and we help the choice that the deserves of our partnership with Tulane College might be thought-about in our personal group,” LCMC mentioned in an announcement shared with Becker’s. “We stay steadfast that the LCMC Well being-Tulane College partnership is of great profit to our group and area, bringing one other educational heart of excellence to the area and enhancing affected person take care of all.”

The lawsuit is drawing nationwide consideration due to its potential implications for hospital transactions throughout the nation at a time when the FTC is taking a harder look at consolidation in healthcare.