OSF’s acquisition of Rockford Health System on hold following injunction, FTC hearing to begin April 17
Posted By Brandon Reid On April 6, 2012 @ 10:49 am In Local News | No Comments
Online Staff Report
OSF HealthCare’s acquisition of Rockford Health System has been put on hold by an injunction granted by Federal Judge Frederick J. Kapala.
Kapala issued his 45-page opinion on the case April 5. He heard three days of testimony in February from attorneys representing both health systems and the Federal Trade Commission (FTC).
The acquisition was challenged by the FTC last fall on the grounds that a merger between the two systems would be anticompetitive and could result in higher costs for area residents.
Kapala’s opinion states that the health systems are “restrained from acquiring each other’s assets or other interests and are directed to return all confidential information received directly or indirectly from one another.”
The opinion states that the two health systems are to “maintain the status quo” until legal proceedings with the FTC are complete.
A hearing on the acquisition before an administrative law judge with the FTC is set to begin April 17 in Washington, D.C.
In a statement, Richard Feinstein, director of the FTC’s Bureau of Competition, said: “We continue to believe in the merits of our case, and that if this deal is ultimately allowed to proceed, the result will be less competition and higher health care prices in the Rockford area. We look forward to presenting our case before the administrative law judge later this month.”
Rockford Health System CEO Gary Kaatz and President and CEO of OSF Saint Anthony Medical Center in Rockford David Schertz have said a merger would allow the health systems to better address health care reform changes and withstand diminishing state and federal reimbursements.
Posted April 6, 2012
Article printed from The Rock River Times: http://rockrivertimes.com
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