Wellmont-Mountain States merger approved by states over FTC opposition

Virginia and Tennessee regulators have given their approval for a proposed merger between Mountain States Health Alliance (MHSA) and Wellmont Health System, which could create a near monopoly on a 13-county area in the Appalachian Mountains.

The Federal Trade Commission has opposed the merger, saying the combined system, to be known as Ballad Health, would control 71 percent of the geographic area which the systems currently serve. The Johnson City Press reports the Virginia Department of Health ignored those concerns, saying competition hasn’t helped access to primary and specialty care or population health management in the region.

Their approval comes with conditions laid out in a Certificate of Public Advantage application, such as keeping all existing Virginia facilities open for at least five years. Regulators also said the combined system’s promises to move away from fee-for-service models helped their case for approval.

“The applicants have both expressed a desire and intent to adopt new business models that emphasize risk-based and value-based contracting,” the Virginia Department of Health said.

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John Gregory, Senior Writer

John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.

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