FTC and Idaho Attorney General Object to St. Luke's Health System's Acquisition of Saltzer Medical Group | Practical Law

FTC and Idaho Attorney General Object to St. Luke's Health System's Acquisition of Saltzer Medical Group | Practical Law

The Federal Trade Commission (FTC) and Idaho Attorney General recently filed a joint complaint objecting to St. Luke's Health Care System's December 31, 2012 acquisition of Saltzer Medical Group P.A.

FTC and Idaho Attorney General Object to St. Luke's Health System's Acquisition of Saltzer Medical Group

Published on 26 Mar 2013 • USA (National/Federal)
The Federal Trade Commission (FTC) and Idaho Attorney General recently filed a joint complaint objecting to St. Luke's Health Care System's December 31, 2012 acquisition of Saltzer Medical Group P.A.
The Federal Trade Commission (FTC) recently announced that it and Idaho Attorney General filed a joint complaint objecting to St. Luke's Health Care System's December 31, 2012 acquisition of Idaho's largest independent multi-specialty physician practice group, Saltzer Medical Group P.A. (the Acquisition). The complaint charged that the Acquisition violated Section 7 of the Clayton Act and Section 48-106 of the Idaho Competition Act. According to the FTC, the Acquisition would create a single dominant health care provider with an almost 60% market share (based on visits) for adult primary care physician services sold to commercial health plans in the Nampa, Idaho area, which would consequently:
  • Allow St. Luke's to use its market power to demand higher health care services rates for primary care physicians' services.
  • Lead to higher costs for health plans, employers and health plan members.
  • Reduce St. Luke's incentives to improve or continue to offer high quality services.
  • Eliminate consumers' only credible (and best) alternative health care network option to St. Luke's.
Two of St. Luke's competitors, St. Alphonsus and Treasure Valley Hospital Limited Partnership, filed a private action seeking to block the Acquisition in the US District Court for the District of Idaho. The FTC and Idaho Attorney General's complaint was filed in the same court, which subsequently authorized consolidation of the two actions. For more information on post-consummation merger enforcement, see Practice Note, Considerations and Strategies in Non-HSR Reportable Transactions.