FTC Blesses $7.6B Hospital Group Tie-Up With Sell-Off

Law360, New York (January 22, 2014, 7:09 PM EST) -- The Federal Trade Commission signed off Wednesday on Community Health Systems Inc.'s $7.6 billion acquisition of rival Health Management Associates Inc. after the hospital operator giant agreed to sell off two hospitals in Alabama and South Carolina.

The proposed settlement requires CHS to sell the two hospitals and all associated operations to an FTC-approved buyer within six months. The deal resolves the watchdog's concerns that the combination of the two health systems would thwart competition for general acute care inpatient services in Gadsden, Ala., and Darlington County, S.C.

"The ultimate effect of the merger would be to increase the likelihood that...

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