July 4, 2022

Volume XII, Number 185

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July 01, 2022

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What Happens When Parties Abandon a Transaction Challenged by the FTC?

When the Federal Trade Commission (FTC) makes a determination to challenge a hospital transaction, the FTC first seeks injunctive relief from the relevant federal district court, requesting that the court prohibit the hospitals from consummating the transaction during the pendency of the FTC’s administrative process. Once the district court makes a decision, either the FTC or the hospitals can appeal the decision to the appropriate court of appeals.

Generally, the parties (both the FTC and the hospital parties) accept the determination of the court of appeals. If the court of appeals upholds a district court’s injunction, the hospitals often abandon the transaction. Traditionally, in those cases, the hospitals and the FTC jointly agree to seek dismissal of the administrative matter pending before the FTC. However, current actions by the FTC may indicate a policy shift, suggesting that the FTC may now attempt to obtain additional relief even if the hospitals abandon a transaction. While this approach is consistent with the FTC’s decision to rescind its 1995 Policy Statement Concerning Prior Approval and Prior Notice Provisions, it is unclear whether the FTC would have jurisdiction for such relief in the absence of a transaction (particularly for nonprofit hospitals), and that is a question worth monitoring.

©2022 Epstein Becker & Green, P.C. All rights reserved.National Law Review, Volume XII, Number 111
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About this Author

John Steren, Epstein Becker Law Firm, Health Care Litigation Attorney
Member

E. John Steren is a Member of the Firm in the Health Care & Life Sciences and Litigation & Business Disputes practices, in the Washington, DC, office of Epstein Becker Green. Mr. Steren devotes a significant portion of his practice to helping health care organizations manage the antitrust risks of joint ventures and other business arrangements. He also focuses his practice on other complex commercial and civil litigation matters.

202-861-1825
Patricia M. Wagner, Epstein becker green, health care, life sciences
Member

PATRICIA M. WAGNER is a Member of the Firm in the Health Care and Life Sciences and Litigation practices, in the firm's Washington, DC, office. In 2014, Ms. Wagner was selected to the Washington DC Super Lawyers list in the area of Health Care.

Ms. Wagner's experience includes the following:

Advising clients on a variety of matters related to federal and state antitrust issues 

Representing clients in antitrust matters in front of the Federal Trade Commission and the United States Department of...

202-861-4182
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