LCMC Health filed a lawsuit against federal antitrust regulators Wednesday after they sought to temporarily block the health system’s plan to buy three HCA Healthcare hospitals in Louisiana.
In its lawsuit against the Federal Trade Commission and others, the New Orleans-based LCMC said it is seeking a ruling that claims the $150 million settlement is not subject to review. according to federal regulations. The transaction, part of a partnership with Tulane University, was approved a few months ago with a Certificate of Public Advantage, leaving it free from antitrust-related prosecution.
“The Public Interest Certification process is rigorous and transparent, with active oversight to ensure consumer protection,” the LCMC said in a statement. “We’re on solid ground and Louisiana knows what’s best for our community.”
In a statement, Louisiana Attorney General Jeff Landry argued that the FTC never submitted comments or attended a public hearing to share concerns about the COPA process. He promised to explore legal options to fight what he considers a federal violation.
A spokesperson for the FTC did not immediately respond to a request for comment.
As part of the proposed transaction, Tulane Medical Center, Tulane Lakeside Hospital, and Lakeview Regional Medical Center will transition to nonprofit status under the LCMC. Most of the services provided at Tulane Medical Center will transition to East Jefferson General Hospital and the University of New Orleans Medical Center over the next few years.
LCMC also agreed to invest $220 million over five years in new equipment and facilities at the three hospitals.
“The merger will increase competition, lead to greater access to healthcare, deliver higher quality healthcare, and will likely does not increase costs unduly. The agreement ensures continuous monitoring to ensure reasonable prices for consumers.” “The sad thing is that the federal government will try to impede growing access to quality health care in a community with so many underserved minorities.”
