The Federal Trade Commission (FTC) has asked Texas not to approve mergers between Shannon Medical Center and Community Hospital.
The FTC’s position is that the merger of San Angelo’s hospitals will lead to a loss of competition, resulting in higher prices and harming consumers.
The commission made similar arguments for the proposed Hendrick’s acquisition of Abilene Regional.
Community Health Systems announced Monday, April 20, 2020 that a subsidiary of the company has signed a definitive agreement to sell 171-bed San Angelo Community Medical Center (SPAC) in San Angelo and its associated assets to subsidiaries of Shannon Health System. The company later announced the proposed merger of 231-bed Abilene Regional Medical Center to Abilene-based Hendrick Health System.
Changes to Texas state law in 2019 opened a pathway for the merger of the hospitals by trading federal oversight for state oversight, a move supported by the CEOs of Shannon and Hendrick during testimony they gave to the state’s Public Health Committee on April 3, 2019.
The San Francisco-based firm wanted to access the public market faster and with more certainty, worried the US presidential election and the second wave of coronavirus could cast a shadow on its growth, according to a person familiar with the discussions. In a SPAC deal, the funds raised by the company are committed upfront.
Full Content: Bloomberg
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