FTC spars with NorthShore, Advocate in preliminary injunction for merger

The preliminary injunction hearing for a merger between NorthShore University HealthSystem and Advocate Health Care, two major hospital systems in the Chicago area, began last week with objections from U.S. Federal Trade Commission.

The FTC argued the impending deal would lead to increased costs and decreased quality of care for patients. The hospitals’ lawyers responded with estimates that customers would save as much as $500 million a year.

The FTC first announced its intention to block the deal in December. The merger would create the nation’s 11th largest not-for-profit hospital system in the country and control 60 percent of the acute inpatient services in the suburbs to the north of Chicago.

The hospitals contend the FTC’s estimates are incorrect because they omit Northwestern Memorial Hospital in Chicago. They contend the projected market share of the merger would be closer to 30 percent.

The result of the preliminary injunction hearing will go a long way in determining the future of the deal.

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Nicholas Leider, Managing Editor

Nicholas joined TriMed in 2016 as the managing editor of the Chicago office. After receiving his master’s from Roosevelt University, he worked in various writing/editing roles for magazines ranging in topic from billiards to metallurgy. Currently on Chicago’s north side, Nicholas keeps busy by running, reading and talking to his two cats.

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