Following the announcement that the parties are abandoning their proposed transaction, Daniel Francis, Deputy Director of the Bureau of Competition, made this statement:
“This is great news for patients in the Memphis area. The FTC voted unanimously to challenge this hospital transaction because it would have eliminated competition between two of only four hospital providers and left patients worse off as a result. That outcome has been avoided. I’m grateful not only to the Bureau’s staff—whose work for consumers across the country has continued at a record pace despite the COVID-19 pandemic—but also to our partners in the Tennessee Attorney General’s Office, who joined our litigation and worked closely with us to secure this result."
On Nov. 13, 2020, the Commission voted 5-0 to file an administrative complaint and authorize staff to seek a temporary restraining order and preliminary injunction in federal court that would stop the proposed acquisition.
The FTC charged that the acquisition would cause healthcare costs to rise and would diminish the parties’ incentives to expand service offerings, invest in technology, improve access to care, and focus on quality of healthcare in the Memphis area.