On January 24, 2014, Idaho Federal District Court Judge B. Lynn Winmill ruled in Boise that the buyout of Saltzer Medical Group by St. Lukes Health System violated federal antitrust laws. The news of the decision was reported by the Idaho Statesman in its story headlined Judge says St. Lukes buyout violates antitrust law, must be undone. Here is a link to the judge’s Memorandum Decision and Order.
This decision, if it stands, may have significant effects on future hospital buyouts of groups of physicians in Idaho.
Notably, Judge Winmill observed that while the buyout was apparently a sincere effort by St. Lukes to improve the delivery of health care in the Treasure Valley, “… there are other ways to achieve the same effect that do not run afoul of the antitrust laws and do not run such a risk of increased costs. For all of these reasons, the acquisition must be unwound.”
In other words, instead of bending the law and allowing the illegal acquisition because he believed the outcome could be beneficial, Judge Winmill said that the same beneficial outcomes could be achieved without violating the antitrust laws.
Imagine that! A judge in Idaho that follows the law. What a concept!
ADDENDUM on 01-27-2014 at 6:55 AM: Antitrust cases are about as exciting as watching grass grow, but antitrust law affects the costs of goods and services to all of us. Here is a link to a US Department of Justice consumer booklet entitled Antitrust Enforcement and the Consumer. For another general overview of the federal antitrust laws, see the Federal Trade Commission’s Guide to Antitrust Laws. Idaho’s state antitrust laws are found generally in Idaho Code, Title 48 — Monopolies and Trade Practices.
It is likely that health providers in our area including Rockwood Health Systems, Providence Washington, Kootenai Health, and Northwest Specialty Hospital will be paying very close attention to Judge Winmill’s decision and any subsequent appeal.
ADDENDUM on 01-29-2014 at 7:52 AM: Federal District Court Judge B. Lynn Winmill has issued an order unsealing his Findings of Fact and Conclusions of Law in this case. The Idaho Statesman has reported on the content in a news article this morning headlined Newly released St. Lukes court documents show merger would have created higher salaries, costs.