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Lessons From A Hospital Merger Enforcement Action

Law360 (August 24, 2007, 12:00 AM EDT) -- Hospitals and health systems contemplating mergers should display "antitrust sensitivity" in pre-merger planning and post-merger implementation.

On August 6, 2007, the Federal Trade Commission (FTC) ruled that a consummated merger between Evanston Northwestern Healthcare (ENH) and Highland Park Hospital was an anti-competitive acquisition in violation of Clayton Act Section 7, which prohibits transactions that may substantially lessen competition.

Part I of this On the Subject summarizes the FTC’s decision. Part II focuses on the key lessons to be drawn from the ENH enforcement action and offers...
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