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Health Law Keyed to Furrow
In the Matter of Evanston Northwestern Healthcare Corp.
Facts
Before the merger, Evanston Northwestern Healthcare Corp. (ENH) (Defendant) owned Evanston Hospital and Glenbrook Hospital, both in Cook County, Ill. In January 2000, Defendant acquired Highland Park, the nearest hospital to the north. There are other hospitals in the area, including nine facilities that are closer to Evanston, Glenbrook, or Highland Park than they are to each other, but there are no other hospitals within the triangle formed by the three ENH (Defendant) hospitals. The Federal Trade Commission (FTC) (Plaintiff) filed a complaint in February 2004, claiming that Defendant's merger with Highland Park caused less competition and higher prices for insurers and health care consumers for general acute-care inpatient services sold to managed care organizations in the relevant geographic market. In October 2005, an administrative law judge found that Defendant exercised its enhanced power to obtain price increases considerably above its premerger prices and considerably larger than price increases obtained by other comparison hospitals. Defendant was ordered to divest of Highland Park.
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