FTC files appeal in Advocate-NorthShore merger

  • Downers Grove-based Advocate Health Care, above, and NorthShore University HealthSystem merger is on hold because the Federal Trade Commission appealed a judge's ruling that would have paved the way for the merger.

    Downers Grove-based Advocate Health Care, above, and NorthShore University HealthSystem merger is on hold because the Federal Trade Commission appealed a judge's ruling that would have paved the way for the merger. DAILY HERALD FILE PHOTO

 
Daily Herald Report
Updated 6/15/2016 7:59 PM

The Federal Trade Commission and the Illinois attorney general's office Wednesday filed a motion seeking to stop the merger between Downers Grove-based Advocate Health Care and NorthShore University HealthSystem, according to a report in Crain's Chicago Business.

The action comes one day after Judge Jorge Alonso of the U.S. Northern District Court gave the green light to the health systems to move ahead with their merger. Spokesmen for the FTC and the attorney general did not immediately return phone calls.

 

On Tuesday, the federal court decision denied the FTC's request to stop the merger that would create a system with 16 hospitals in Barrington, Downers Grove, Elgin, Libertyville and other suburbs.

Advocate and Northshore announced their intentions to merge in September 2014. After a 15-month review, the FTC opposed the merger in December 2015, alleging the proposed merger would operate more than 50 percent of the general acute care inpatient hospital services. The FTC argued that consumers could face possible rising health care costs, while the system would have less incentive to upgrade services and improve quality.

A federal court hearing took place in April and the decision was issued Tuesday when the judge denied the FTC's request to block the merger.

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