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Business Articles Awards > Economics

Key Takeaways from the Advocate-Northshore Merger Litigation

Steven Tenn, CPI Antitrust Chronicle, July 2017

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Few hospital mergers are litigated; the Federal Trade Commission (“FTC”) has challenged only seven hospital mergers since 2005.2 Often times, the merging parties are able to constructively work with the FTC to resolve the agency’s competitive concerns. This process works most efficiently and effectively when the merging parties have a clear understanding of how the FTC is likely to review a given merger to determine whether it raises significant competitive issues.

The FTC’s review of hospital mergers has evolved over time. Therefore, it is important to keep abreast of the agency’s current approach. The few hospital mergers that go to trial are one source of such information since the litigation process requires the FTC and its economic experts to publicly articulate the competitive concerns at issue and how they were analyzed.

This article describes the FTC’s approach in a recent litigation, FTC v. Advocate Health Care Network, where the FTC successfully challenged a proposed merger of two healthcare systems with hospitals in the northern suburbs of Chicago. I discuss the case from my perspective as the FTC’s economic expert in that matter.

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