On March 24 the Federal Trade Commission issued an order temporarily putting on hold its hearing on the Cabell Huntington Hospital’s proposed acquisition of St. Mary’s Medical Center and Pallottine Health Services.
The legal battle began last July, when the presidents of the two hospitals announced an agreement with the West Virginia Attorney General permitting the transaction. In November the FTC responded with an administrative complaint challenging the transaction as anticompetitive.
West Virginia reacted by passing state legislation permitting “cooperation agreements” between a teaching hospital and one or more other hospitals. The theory of the legislation is that it constitutes state action putting the transaction outside the jurisdiction of the FTC.
But the FTC didn’t agree that the state-action theory applied. Earlier this month it issued written comments challenging the West Virginia position.
That was closely followed by a joint motion before the FTC to put the matter on hold for 30 days. On March 24 the FTC granted the motion, delaying further proceedings until April 26 at the earliest.
Stayed tuned for further developments.
