Tag: Health Care

The Minnesota Rural Health Cooperative (MRHC), comprised by a group of doctors and hospitals in southwestern Minnesota, agreed to a settlement with the Federal Trade Commission that prohibits anticompetitive tactics the group allegedly used to increase health insurance reimbursement rates. The MRHC is made up of approximately 25 hospitals and 70 doctors, representing most of the hospitals and half of the primary care physicians in southwestern Minnesota. According to the FTC’s complaint, when members join the MRHC, they agree that the group’s board of directors will negotiate and contract with health insurers on their behalf and that they will abide by the MRHC contracts. The settlement order bars the MRHC from using coercive tactics to extract favorable contract terms from health plans. In addition, the order requires the MRHC to offer to renegotiate all current contracts with health plans and to submit any revised contracts for state approval.

To settle FTC charges that its proposed acquisition of Alcon, Inc., would be anticompetitive, Novartis AG agreed to sell an injectable eye care drug used in cataract surgery. Novartis and Alcon are the only two U.S. providers of the class of drugs known as injectable miotics, and the FTC alleges that the acquisition would have created a monopoly in injectable miotics. The settlement requires Novartis to sell its drug Miochol-E to Bausch & Lomb, Inc.

The Commission issued an administrative complaint challenging Carilion Clinic’s 2008 acquisition of two competing outpatient clinics in the Roanoke, Virginia, area. The complaint alleges that Carilion’s acquisition of these outpatient centers eliminated competition for patients in the Roanoke area.  On October 7, 2009 Carillion agreed to sell two independent outpatient medical clinics it acquired last year to settle the charges.