On Thursday, the US Federal Trade Commission filed a lawsuit against Louisiana Children’s Medical Center for not reporting their acquisition of three competing hospitals, and is seeking a block on their integration.
According to the FTC, LCMC and HCA Healthcare violated federal law by completing their $150 million acquisition without reporting it to US antitrust authorities and ignoring the mandatory waiting period.
Read more: FTC Sues To Stop Hospital Merger
“We are seeking to hold LCMC accountable for disregarding the law by ignoring filing requirements and prematurely consummating their deal,” said FTC Chair Lina M. Khan. “Businesses that believe they can flout the law should be on notice: we will use the full scope of our authority to combat obstruction and to vindicate the FTC’s authority to investigate potentially illegal deals.”
LCMC is a non-profit corporation based in New Orleans that operates a network of six hospitals in the greater New Orleans area. On January 3, LCMC announced that it had finalized its acquisition of the three additional hospitals in the area — Tulane Medical Center, Lakeview Hospital, and Lakeside Hospital — from HCA, a nationwide operator of healthcare facilities based in Tennessee.
