This newsletter provides a compilation of the latest news headlines by our Healthcare attorneys. Certain online publications may require a site registration or subscription in order to access the article.
FTC Approves Express Scripts, Inc.'s Acquisition of Medco Health Solutions, Inc. , FTC File No. 111-0210, April 2, 2012
In a 3-1 vote following an eight-month investigation, the FTC closed its investigation of Express Scripts, Inc.'s proposed acquisition of Medco Health Solutions, Inc. The proposed acquisition would merge two of the largest pharmacy benefits managers in the United States for approximately $29 billion. In its Statement, the Commission majority stated that "we conclude that the proposed transaction is not likely to substantially lessen competition in violation of Section 7 of the Clayton Act."
FTC Orders the Divestiture of ProMedica Health System Inc.'s Recent Acquisition of Ohio Hospital- Julie Brill
On March 22, 2012, the FTC voted unanimously to uphold its initial decision ordering ProMedica Health System Inc. to divest St. Luke's Hospital to an FTC-approved buyer within 180 days. The FTC ruled that ProMedica's 2010 acquisition of St. Luke's was likely to substantially lessen competition and would lead to higher prices for general acute-care inpatient hospital services and inpatient obstetric services sold to consumers in the Toledo, Ohio area.
Indirect Purchasers Challenge $400 Million Pay-For-Delay Patent Settlement, Law 360, April 2, 2012
A class of indirect purchasers argued before the California Supreme Court that Bayer AG's $400 million pay-for-delay patent settlement to Barr Pharmaceuticals Inc. helped preserve a monopoly for Bayer. The indirect purchasers have asked the California Supreme Court to reverse a ruling by the Court of Appeals that the settlement did not violate competition laws.
Fla. Oncologists Sued Over Alleged $3.5M Medicare Fraud, Law 360, March 23, 2012
On March 23, 2012, the U.S. government joined a qui tam lawsuit against two radiation oncologists which alleges that the oncologists defrauded Medicaid and Medicare out of over $3.5 million. Specifically, the complaint alleges that the oncologists did not supervise or perform certain procedures that require medical supervision and also had medically unnecessary procedures performed.
W.Va. Hospital Cos. Pay $2.25M Over FCA Medicaid Claims, Law 360, March 30, 2012
Monongalia Health Systems Inc. and Morgantown Health Care Corp. have agreed to pay the U.S. government $2.25 million to settle False Claims Act allegations against them. The U.S. government had alleged that a nursing facility run by Monongalia Health Systems Inc. and Morgantown Health Care Corp. made false Medicare and Medicaid claims because it was understaffed and delivered substandard care.
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