Methodist Le Bonheur is not going to transfer ahead with its $350 million acquisition of two Tenet Healthcare Corp.’s Memphis-area hospitals that confronted opposition from federal regulators, the organizations introduced Wednesday.
The deal included Saint Francis Hospital–Memphis and Saint Francis Hospital–Bartlett, their related doctor practices and 6 MedPost pressing care facilities. The Federal Commerce Fee, which sued to dam the transaction, mentioned Memphis-based Methodist would management almost 60% of the already extremely concentrated acute-care market, possible leading to elevated healthcare prices.
The Saint Francis hospitals did not tackle the FTC’s go well with in a ready assertion, solely saying that the most effective course for each organizations is to stay unbiased.
“This choice maintains our capability to offer glorious care to our sufferers, and does not change — or compromise in any manner — our longstanding promise to boost entry to care, cutting-edge medical expertise and the best high quality physicians and employees,” the assertion reads.
The suppliers confronted an FTC lawsuit and the regulatory hurdles concerned with including investor-owned hospitals to Methodist’s not-for-profit system.
If the transaction went by means of, it might have eradicated the aggressive forces that preserve costs and high quality in examine, the FTC argued, noting that Methodist has offered worth concessions to industrial insurers to exclude Saint Francis from slender community plans or in any other case drawback Saint Francis.
Along with competing to be in insurers’ networks, Methodist and Saint Francis additionally draw sufferers by enhancing high quality, increasing providers and rising entry for sufferers within the Memphis space, in accordance with the grievance.
Daniel Francis, deputy director of the FTC Bureau of Competitors, mentioned the deal’s collapse is nice information for Memphis-area sufferers.
“The FTC voted unanimously to problem this hospital transaction as a result of it might have eradicated competitors between two of solely 4 hospital suppliers and left sufferers worse off in consequence. That final result has been prevented,” he mentioned in ready remarks. “I am grateful not solely to the bureau’s employees—whose work for shoppers throughout the nation has continued at a file tempo regardless of the COVID-19 pandemic—but additionally to our companions within the Tennessee Legal professional Basic’s Workplace, who joined our litigation and labored intently with us to safe this consequence.”
Tenet, which recorded a web loss from persevering with operations attributable to shareholders of $197 million within the quarter ended Sept. 30, had anticipated to finish the sale in 2020. Executives mentioned in current earnings calls that the proceeds would improve its liquidity place, along with the potential sale leaseback of sure medical workplace buildings.
Dallas-based Tenet lately agreed to promote most of its pressing care facilities to FastMed Pressing for $80 million. Tenet mentioned in a information launch that it’s going to concentrate on its ambulatory surgical procedure heart enterprise, which the corporate is poised to develop with its lately introduced $1.1 billion deal to amass 45 ASCs.