Issue link: https://beckershealthcare.uberflip.com/i/1462911
40 TRANSACTIONS The healthcare deals in the FTC's crosshairs By Laura Dyrda H ealthcare deals are heating up as costs rise to provide healthcare services without a similar increase in pay. e Federal Trade Commision is keeping a close eye on industry transactions to halt any anticompetitive behavior. Four healthcare deals under scrutiny: 1. e proposed merger between Lifespan and Care New England is on the rocks aer the FTC and Rhode Island Attorney General Peter Neronha said they would sue to challenge the deal Feb. 17. e merged entity would own eight of the state's 13 hospitals and 80 percent of hos- pital beds in the market if the deal goes through. Mr. Neronha raised concerns that the merger would increase healthcare costs. 2. e FTC approved a final order in January im- posing strict limits on future mergers by DaVita, a dialysis service provider, stating its acquisition of Salt Lake City-based University of Utah Health's dialysis clinics would be anticompetitive. DaVita was required to sell three dialysis clinics to Sand- erling Renal Services and won't be able to enforce noncompete agreements or other employee re- strictions under its final agreement with the FTC. DaVita must also obtain prior approval to acquire new ownership in any Utah-based dialysis clinic for the next 10 years. 3. e FTC is examining Oracle's planned $28 bil- lion deal to acquire Cerner. Its 15-day deadline for reviewing the deal under the Hart-Scott-Rodino Act ended Feb. 22. Cerner stockholders allege Cerner had insufficient or incorrect information in its disclosures. 4. Last September, the FTC requested information about a merger between Southfield, Mich.-based Beaumont Health and Grand Rapids, Mich.-based Spectrum. e two health systems signed a formal agreement to merge and create a 22-hospital sys- tem. e FTC said it would take longer than usual to approve the deal due to a backlog of merger filings in all industries. n EyeSouth acquires Alabama ASC By Marcus Robertson G adsden (Ala.) Eye Associates, which includes Northeast Ala- bama Eye Surgery Center, has joined Atlanta-based EyeSouth Partners, according to Feb. 23 news release. The partnership represents EyeSouth's second in the state of Alabama and 29th overall. Its network now includes 29 practices with more than 235 doctors and spans Georgia, Texas, Louisiana, Florida, Ten- nessee, Ohio, Kentucky, Pennsylvania and Alabama. EyeSouth is backed by private equity firm Shore Capital Partners. n $21M medical office building housing GI, ortho practice sold By Patsy Newitt M ontecito Medical Real Estate has purchased a medical office building in Virginia Beach, Va., for $21 million, Virginia Busi- ness reported Feb. 17. The two-story, 52,000-square-foot Beach Medical Pavilion houses Gas- troenterology Ltd. of Virginia Beach and OrthoVirginia. Gastroenterology Ltd. has nearly 20 physicians and three locations. OrthoVirginia has 131 physicians across 44 locations. n Cardiologists sell New York medical office building for $11.5M By Patsy Newitt A medical office building in Saratoga Springs, N.Y., was sold to an investor for $11.5 million, according to Albany Business Review. The building, which houses Saratoga Cardiology Associates, was sold to an investor associated with Medcraft Investment Partners. The building was sold by two LLCs associated with cardiologists Roland Phillips, MD, and David Kandath, MD, who work at Saratoga Cardiology. n