FTC Puts Advocate-NorthShore Merger on Hold

Plans for two prominent Chicagoland hospital chains to merge have been halted as the Federal Trade Commission announced Friday they will block the merger of Chicago-based Advocate Health Care, the largest hospital chain in the state and NorthShore University HealthSystem, the dominant health care provider in the north suburbs.

The merger would mean a majority of the hospitals and more than half of inpatient hospital services would be controlled by one company and consumers would be harmed through a rise in health care costs, the FTC said in a statement. The agency seeks a temporary restraining order to hold up the deal pending an administrative trial, according to the Chicago Tribune.

“Advocate is one of the largest health systems in the Chicago area, and it competes directly with NorthShore in the northern suburbs of Chicago,” Debbie Feinstein, director of the FTC’s of competition, said in a statement. “This merger is likely to significantly increase the combined system’s bargaining power with health plans, which in turn will harm consumers by bringing about higher prices and lower quality.”

But both companies plan to fight the FTC’s decision.

“We remain steadfast in our commitment to come together for the betterment of the patients and communities we serve,” said Mark Neaman, NorthShore CEO and president in a joint statement with Advocate. “We believe that by bringing together our two organizations, we will lower costs, enhance care and expand access while driving innovation.”

more via the Chicago Tribune