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FTC blocks proposed merger of OSF St. Anthony Medical Center and Rockford Memorial Hospital

April 2012

The FTC retained Bates White Partner Cory Capps to conduct an economic analysis of the likely effects of the proposed merger of OSF St. Anthony Medical Center and Rockford Memorial Hospital on competition and consumer welfare. Dr. Capps filed two affidavits and two expert reports and provided hearing testimony explaining why the likely effect of the proposed merger would be to increase prices of hospital services and thereby increase insurance premiums and costs to employers and enrollees.

The FTC filed an administrative complaint and a parallel action in federal court seeking a preliminary injunction to halt the merger. On April 5, 2012, US District Judge Frederick Kapala granted the FTC’s request for a preliminary injunction, finding the FTC had demonstrated a likelihood of success on the merits. Following this ruling, the parties abandoned their proposed merger.