Corporate & Securities Law

FTC Challenges Northern VA Hospital Deal, Designates Rosch as ALJ

By Manfred Gabriel

By a 3-0 vote (Commissioner Rosch not participating), the under-strength Federal Trade Commission on Friday approved a complaint challenging the proposed acquisition by Inova Health System Foundation of Prince William Health System, Inc. and authorized the staff to seek a temporary restraining order and preliminary injunction in federal district court to block the deal pending a full administrative trial on the merits. The action in federal district court will be brought jointly with the Attorney General of the Commonwealth of Virginia.

The press release quotes Jeffrey Schmidt, Director of the Bureau of Competition:

?There is no question that Northern Virginia residents have benefitted from the robust competition between Inova and Prince William Hospital through better services and lower prices. If Inova acquires Prince William Health System, this vital competition will be lost, health care prices will increase, and many residents will be forced to accept reduced health care coverage or no coverage at all.?

The Federal Trade Commission has also designated Commissioner J. Thomas Rosch as the Administrative Law Judge (ALJ) in the administrative trial on the merits challenging the proposed acquisition by Inova Health System Foundation of Prince William Health System, Inc. The vote was 3-0 (Rosch not participating), and further materials, including information on the background of the transaction, can be found here.

Full post as published by Antitrust Review on May 12, 2008 (boomark / email).