WASHINGTON, Sept. 5, 2012 /PRNewswire/ -- The law firm of Ober|Kaler announced today that it advised Renown Health in its recent agreement with the Federal Trade Commission (FTC) and state of Nevada settling the antitrust investigation of consummated cardiology group acquisitions. It is the first FTC settlement of an investigation into a physician group acquisition, and the only antitrust consent decree by any federal or state agency allowing partial divestiture of physicians as opposed to potentially more restrictive limitations on the hospital system's activities. As a result, it provides rare guidance to hospitals and physicians considering such mergers.
(Logo: http://photos.prnewswire.com/prnh/20120131/PH44104LOGO )
"The past several years have seen a dramatic increase in hospital acquisitions of physician practices," explains William E. Berlin, the Ober|Kaler health care antitrust attorney who represented Renown. "This settlement provides a blueprint for managing physician acquisitions and resolving any ensuing government investigation."
In January 2011, Renown Health, the largest hospital system in Reno, Nevada, acquired Sierra Nevada Cardiology Associates, with 15 cardiologists. Three months later, Renown acquired Reno Heart Physicians, the other major cardiology group in the region with 17 cardiologists. The employment agreements between Renown and the cardiologists include noncompete covenants restricting any physician who leaves Renown from providing competing services, as well as other constraints. Antitrust complaints filed by the FTC and the Nevada Attorney General's office claim that the resulting market consolidation, combined with the barrier created by the noncompete agreements, potentially reduced competition for adult cardiology services in the region.
Under the settlement, Renown agreed to suspend noncompete provisions for at least 60 days, allowing as few as 6 but no more than 10 cardiologists to seek employment with other Reno hospitals or to practice independently. Other provisions call for advance notification to the government of any future acquisitions of cardiology groups in Reno and creation of an antitrust compliance program for Renown. There are no provisions restricting Renown's ability to contract with health plans or recruit new cardiologists, or otherwise limiting its ability to create ACOs or other innovative services to meet the demands of health care reform.
About Ober|Kaler
Ober|Kaler is a national law firm providing integrated regulatory, transactional and litigation services to financial, health care, construction and other business organizations. For more information please visit www.ober.com.
SOURCE Ober|Kaler
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article