FTC Lawsuit Causes HCA and Steward Health to Abandon Utah Hospital Deal
This Bulletin is brought to you by AHLA’s Antitrust Practice Group.
- August 25, 2022
- Jordan M. Passmore , Clifford Chance US LLP
On June 2, 2022, the Federal Trade Commission (FTC) issued an administrative complaint to block the proposed acquisition of Steward Health Care System, LLC (Steward) by HCA Healthcare, Inc. (HCA). The FTC argued that the proposed acquisition violated Section 5 of the FTC Act, and Section 7 of the Clayton Act. In its press release, the FTC alleged that "the deal would eliminate the second and fourth largest healthcare systems in the Wasatch Front region, where approximately 80 percent of Utah's residents live." The Commission voted 5-0 to issue the administrative complaint, along with authorizing staff to seek a temporary restraining order and preliminary injunction in the U.S. District Court for the District of Utah. As discussed below, the parties ultimately decided to abandon the proposed transaction.
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