The complaint asserts that the proposed deal would reduce incentives for quality improvements in healthcare services in the affected region. Credit: Guschenkova / Shutterstock.com.

The Federal Trade Commission (FTC) in the US has lodged an antitrust lawsuit to block John Muir Health’s planned $142.5m deal for taking full ownership in San Ramon Regional Medical Center from Tenet Healthcare.

The agency argues that the deal would eliminate competition between John Muir Health and San Ramon Regional Medical Center in California’s I-680 corridor, leading to higher healthcare costs.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

This complaint alleges that the acquisition would give John Muir Health control over more than 50% of the market for inpatient general acute care services in the region.

According to the agency, this would result in increased insurance premiums, co-pays, and other out-of-pocket costs for commercial health insurance enrollees.

The FTC and the California Attorney General’s office are jointly filing a complaint in federal court and seeking a temporary restraining order to prevent the transaction pending an administrative proceeding.

This complaint asserts that the proposed deal would reduce incentives for quality improvements in healthcare services in the affected region.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

FTC Bureau of Competition director Henry Liu said: “San Ramon Regional Medical Center has played an important role in ensuring Californians in the I-680 corridor have access to quality, affordable care for critical health care services, such as cardiac surgery and childbirth.

“John Muir’s acquisition of San Ramon Medical would increase already high health care costs in the area and threaten to stall quality improvements that help advance care for all patients.”

John Muir Health comprises two prominent medical centres, the Walnut Creek Medical Center and the Concord Medical Center.

Besides, it operates urgent care centres and provides primary care and outpatient services.

Its physician network includes more than 1,000 primary care and specialist physicians, and its medical group consists of 350 clinicians.