Home > Property & Casualty > Attempt at savings through consolidation, but FTC blocks Georgia hospital deal

Attempt at savings through consolidation, but FTC blocks Georgia hospital deal

An interesting case to block consolidation on anti-competitive grounds battles on in Georgia, in light of Healthcare Reform and the move towards more consolidation in an effort to wring out savings.

The Phoebe Putney Health System’s plan to acquire HCA-owned Palmyra Medical Center for $195 million hit a roadblock last week after the Federal Trade Commission challenged the deal as anti-competitive. The FTC voted 5-0 to request an injunction of the merger.

“The complaint alleges that the transaction as proposed would violate federal law by eliminating the vigorous competition that currently exists” between Phoebe Putney Memorial Hospital and Palmyra in Albany and the surrounding six-county area, said a statement released from the office of Attorney General Sam Olens.

The trend of consolidation will most likely continue as a means of cost savings, a side effect of Healthcare Reform.

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