Tag: Health Care

The largest U.S. supplier of diagnostic testing products used by small animal veterinarians, IDEXX Laboratories, Inc., agreed to drop its exclusive-dealing arrangements with a top distributor, resolving FTC charges that it was using the exclusive arrangements to stifle competition. IDEXX has agreed to a settlement order that prohibits concurrent exclusive distribution arrangements with the three national distributors of point-of-care (POC) diagnostic testing products. According to the FTC’s complaint, IDEXX has used its dominant market power to reduce competition by threatening to drop the distributors if they carried other companies’ products that compete with IDEXX products.

The FTC issued an administrative complaint against Reading Health System’s proposed acquisition of Surgical Institute of Reading L.P., alleging that the combination of the two health care providers would substantially reduce competition in the area surrounding Reading, Pennsylvania. The FTC also authorized staff, in conjunction with the Pennsylvania Attorney General, to seek a preliminary injunction in federal district court or other relief necessary to stop the deal pending a full administrative trial. After the parties abandoned the transaction, on 12/7/2012, the FTC formally dismissed the administrative complaint.

Renown Health agreed to settle charges that its acquisitions of two local cardiology groups reduced competition for the provision of adult cardiology services in the Reno area. Renown Health, based in Reno, Nevada, operates general acute care hospitals and commercial health plans serving the Reno area. Before the acquisitions, virtually all of the cardiologists in the Reno area were affiliated with two medical groups – Sierra Nevada Cardiology Associates and Reno Heart Physicians.To settle the charges, Renown Health will release its staff cardiologists from "non-compete" contract clauses, allowing up to 10 of them to join competing cardiology practices.

A Puerto Rican cooperative of pharmacy owners, Cooperativa de Farmacias Puertorriqueñas, known as "Coopharma," agreed to settle Federal Trade Commission charges that it harmed competition by negotiating, entering into, and implementing agreements among its member pharmacies to fix prices on which they contract with insurers and pharmacy benefit managers. In settling the charges, Coopharma has agreed not to engage in such conduct in the future. Following a public comment period, the Federal Trade Commission has approved a petition by Cooperativa De Farmacias Puertorriqueñas, a Puerto Rican cooperative of independent pharmacy owners, to reopen and modify the FTC’s 2012 final order.