WASHINGTON (Legal Newsline) — The Federal Trade Commission (FTC) announced the approval Jan. 9 of a final order settling charges that CentraCare’s acquisition of St. Cloud Medical Group, also known as SCMG, would be anti-competitive. The approval comes following a public comment period.

 

CentraCare was set to acquire SCMG when the FTC stepped in and alleged the acquisition would harm competition because it would eliminate SCMG as a potential alternative in the St. Cloud Area. The FTC argued that without a remedy the acquisition could increase CentraCare’s bargaining power for commercial health plans and allow it to raise reimbursement rates and secure more favorable terms.

 

To complete the acquisition following the proposed settlement order, CentraCare needed to allow portions of its physicians in adult primary care, pediatric and OB/GYN departments to leave the health system and work elsewhere or start their own practices. CentraCare also needed to provide select financial incentives to some of the departing physicians.

 

The FTC voted 3-0 to approve the final order.

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