St. Luke’s acquisition of Saltzer Medical Group is one of the most significant cases in the healthcare industry in recent years. In the year 2016, the enforcement of antitrust as well as litigation had a big year. Therefore, this case qualifies to be the most significant case among the antitrust cases that the executives should keep their eyes on.
The role of St. Luke’s Health System has played in the recent years, is the highly publicized antitrust case, acquisition of St. Luke’s Saltzer Medical Group, and has been in the news headlines in the recent years (Capps, Dranove and Ody, 2017). FTC in its ruling in the year 2014 said that St. Luke’s went against the laws of antitrust when it obtained Saltzer the ruling was supported by the federal judge. As a result, St. Luke’s was given an order to unwind all that it acquired in the year 2012 for the medical group. However, in June of the year 2014, St Luke filed an appeal against the decision (Dawson, 2015). The court after considering the appeal, it permitted St. Luke’s to continue operating Saltzer, as the court was on with challenging the ruling, that St Luke’s had gone against the antitrust laws. One of the most important, in this case, is the fact that court discovered that, Saltzer was made in a way that could improve the quality of care as well as improve the outcomes of healthcare. According to the court, these goals were achievable. However, according to the traditional antitrust market analysis, the acquisition was to give, some groups market powers, and because of that, it should be discouraged. This is according to Mr. Grimes.
The outcome of the case
The outcome of this case will be of great importance not only to St. Luke but also to the entire healthcare industry because many hospitals, as well as clinics, want to purchase physician groups, which can help them when it comes to delivering healthcare that is more integrated. On the other, hand the outcome of this case can also lead to transactions that could prompt close antitrust review (Lim, 2017). However, the manner in which most of the hospitals and clinics perceive the potentiality as well as the efficiencies that can be achieved through the transactions. Points out very clearly that, the hospitals and the clinics will not do without the acquisition of the Saltzer. On the other hand, the hospitals should be impacted by the acquisition so that they can be in a position of standing with the transactions no matter what since they understand what it will do to the healthcare industry as a whole (Molinari, 2018). I have a feeling that St. Luke lost the case in January in the year 2014 because it did not defend itself well, in as much as what it was doing in the healthcare industry was concerned. However, after explaining to the court what the acquisition was all about, the court found out that, it meant well for the healthcare and the quality of the healthcare offered to people.
Some other time what, organizations in the healthcare do may not be against the antitrust laws. However, the manner in which they present whatever they do appears as if it is against the antitrust laws. Therefore whatever the organizations do in the healthcare industry should be very clear and well known and understood by the interested parties to avoid many cases.
Capps, C., Dranove, D., &Ody, C. (2017). Physician practice consolidation is driven by small acquisitions, so antitrust agencies have few tools to intervene. Health Affairs, 36(9), 1556-1563.
Dawson, A. (2015). Trust, trustworthiness, and health. Forum for Medical Ethics Society.
Lim, D. (2017). Antitrust and the Mylan Conspiracy.
Molinari, A. (2018). Healthcare mergers and Acquisitions in an Era of Consolidation: Review of Health Insurance Mergers and a Call for Agency Collaboration in Antitrust Information. Pepp. L. Rev., 45, 405.
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