FTC Approves ProMedica Health System’s Divestiture of former Rival St. Luke’s Hospital

Following a public comment period, the Federal Trade Commission has approved ProMedica Health System’s divestiture of its former rival, St. Luke’s Hospital, under the provisions of  a Commission order. The divestiture will ensure that St. Luke’s operates as an independent, standalone community hospital serving the Toledo, Ohio area. Although ProMedica consummated its acquisition of St. Luke’s in August 2010, St. Luke’s was held separate during the FTC’s investigation and challenge to the acquisition, first through an agreement with the parties and later, by a federal district court order following a preliminary injunction hearing.

In 2012, the Commission ruled that ProMedica’s acquisition of St. Luke’s was likely to substantially lessen competition and increase prices for general acute-care inpatient hospital services and inpatient obstetric services sold to commercial health plans in Lucas County, Ohio. The ruling was upheld by the U.S. Court of Appeals for the Sixth Circuit.

The Commission vote approving the proposed divestiture was 3-0. (FTC Docket No. 9346; the staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526)

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