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  • Washington Highlights

    AAMC Joins Letter Opposing FTC Interference in State Oversight of Hospital Mergers

    Frank Trinity, Chief Legal Officer
    For Media Inquiries

    The AAMC joined the American Hospital Association, America’s Essential Hospitals, the Children’s Hospital Association, the Federation of American Hospitals, and the Louisiana Hospital Association on May 17 urging the Federal Trade Commission (FTC) to discontinue its opposition to a merger involving the Louisiana Children’s Medical Center and HCA Healthcare Inc. in the New Orleans area.   

    After the transaction was approved by the Louisiana attorney general, subject to continuing state supervision, the FTC filed a petition in federal court in the Washington, D.C. The petition asserted that the parties should have filed a premerger notification with the FTC and the U.S. Department of Justice and delay the transaction during a waiting period to allow the federal agencies to review the transaction. 

    The associations’ letter explained that, under federal antitrust law, when a transaction is authorized and supervised by a state, it is exempt from scrutiny under the federal antitrust laws. The letter detailed the compelling reasons why the Louisiana attorney general approved the transaction, noting, among other benefits, that it would increase access to clinical services and high-quality care in the New Orleans region and expanded hubs for specialty care, innovation, and academic medicine.    

    The letter urged the FTC to abandon its opposition to the merger.