Ninth Circuit Holds That Acquisition Violates Antitrust Laws

On February 10, 2015, the U.S. Court of Appeals for the Ninth Circuit affirmed a district court decision finding that the merger of two healthcare providers in Idaho violated antitrust laws. St. Alphonsus Medical Center-Nampa Inc. et al. v. St. Luke's Health System Ltd. et al., No. 14-35173 (9^th Cir. Feb. 10, 2015). Companies considering mergers and acquisitions should take note of several important aspects of the decision.

This case involved a 2012 merger between St. Luke's, an Idaho-based, not-for-profit healthcare system, and Saltzer Medical Group, the largest physician group in Nampa, Idaho. In November 2012, Saint Alphonsus Health System, the only hospital in Nampa, filed a complaint seeking to enjoin the merger. The preliminary injunction was denied. In March 2013, after the parties merged, the Federal Trade Commission (FTC) and the State of Idaho filed a complaint under federal and state antitrust laws. The district court consolidated the two complaints and