Recent US Ninth Circuit Opinion Could Have Broad Application to Antitrust Matters

Although it focuses specifically on a healthcare acquisition, the recent decision by the US Court of Appeals for the Ninth Circuit in St. Alphonsus Medical Center v. St. Luke's Health System is instructive on a broad range of antitrust issues. Companies from all industries can learn from the lessons of St. Luke's, and this article summarizes the main points discussed in the Ninth Circuit's opinion and provides several key take-aways to help companies minimize antitrust risks in their own transactions.

On February 10, 2015, the Ninth Circuit affirmed a district court's ruling that the acquisition of Saltzer Medical Group by St. Luke's Health System would substantially lessen competition among adult primary care physicians (PCPs) in Nampa, Idaho, in violation of Section 7 of the Clayton Act. In November 2012, St. Luke's acquisition of Saltzer was challenged by two rival hospitals, St. Alphonsus Medical Center and Treasure Valley Hospital, which initially lost a motion