The Federal Trade Commission touted its role in Fairfield Medical Center's acquisition by Chillicothe-based Adena Health rather than health care goliath OhioHealth, and vowed to keep protecting hospitals from "bad" deals.
The FTC said in a news release earlier this month that its investigation into the expected deal with OhioHealth, which had been in the works nearly two years before falling through in June, raised "serious competitive concerns." Among those concerns was the risk of higher costs while reducing quality of care for patients, according to the FTC,
The FTC also questioned whether Fairfield Medical Center had been thorough enough in its search for a potential buyer. The commission worked with the Ohio Attorney General's Office on the investigation.
FTC staff, according to the release, said it encouraged the medical center to find other buyers, given its concerns. The sales process attracted several other potential buyers, the FTC said, and Fairfield Medical Center reconsidered the OhioHealth deal before ultimately picking Adena Health.
"FMC’s decision to engage in a thorough shop process and move forward with Adena Health — instead of OhioHealth— underscores the Commission’s commitment to rigorous enforcement of the antitrust laws and to preserving competition for healthcare in local communities across the United States," the release said.
In February, the FTC brought a lawsuit against OhioHealth for alleged anticompetitive practices, which OhioHealth vehemently denied. The legal battle ended with a mutual settlement in June. As part of the agreement, OhioHealth did not admit to any wrongdoing and did not face any penalties or fines.
A spokesperson for OhioHealth said they "fully support" the medical center's decision to move forward with another partner.
"Although regulatory hurdles created obstacles to our partnership with Fairfield Medical Center, we believe that local access to health care is important to every community," the spokesperson said in an emailed statement. "... We wish them and their community continued success and remain committed to our mission of providing health care services close to home for patients across the state."
On Sept. 2, the FTC Bureau of Competition Director Daniel Guarnera called the Adena acquisition of Fairfield Medical a "win" for the FTC and Ohioans. He said that it "should serve as a reminder that we will stop bad hospital deals," and that he was "pleased that staff’s dedicated work resulted in a better deal for the people of Ohio without the need to resort to litigation."
A spokesperson for Adena Health declined to comment.
Adena Health finalized the acquisition of Fairfield Medical Center earlier this month and renamed it Adena Fairfield Medical Center.
Business and consumer issues reporter Samantha Hendrickson can be reached at shendrickson@dispatch.com
This article originally appeared on The Columbus Dispatch: Trump admin touts pushing Fairfield Medical away from OhioHealth merger
