LCMC sues FTC over fines tied to 3-hospital acquisition from HCA
New Orleans-based LCMC Well being has filed a lawsuit in opposition to the Federal Commerce Fee, the Division of Justice and U.S. Lawyer Basic Merrick Garland, looking for clarification on whether or not a state’s acquisition approval can preempt federal merger overview, based on nola.com.
The lawsuit pertains to LCMC’s acquisition of three Louisiana hospitals from Nashville, Tenn.-based HCA Healthcare. LCMC bought the hospitals for $150 million in January.
The FTC had ordered LCMC to halt the acquisition whereas it carried out a overview, however the Louisiana legislature and state lawyer normal had “expressly and unequivocally licensed” the deal to undergo, based on court docket paperwork obtained by Becker’s.
Louisiana is one among about 20 states that offers the state the authority to greenlight hospital mergers below the certificate of public advantage course of, based on nola.com.
Due to this, LCMC argues in court docket paperwork that the acquisition is “indisputably immune” from federal antitrust legal guidelines, together with the HSR Antitrust Act, which it mentioned is in line with Supreme Courtroom precedent affirming the state-action antitrust immunity.
In March, nevertheless, the FTC instructed LCMC that the acquisition ought to have cleared a federal overview for potential antitrust violations, and ordered the system to file for the overview and pay penalties that might be not less than $5 million, based on court docket paperwork.
“The certificates of public benefit course of was rigorous and clear, with energetic supervision to make sure shopper safety,” LCMC mentioned in a press release supplied to Becker’s. “We’re on stable floor and Louisiana is aware of what’s greatest for our neighborhood. We’re steadfast in our dedication to delivering well being, care and training past extraordinary for all, and persevering with to ship the advantages of the partnership for our sufferers and neighborhood.”
The hospitals concerned within the acquisition are New Orleans-based Tulane Medical Middle; Covington, La.-based Lakeview Regional Medical Middle; and Metairie, La.-based Tulane Lakeside Hospital.
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