Grimm Quoted on FTC’s Swift Appeal in Hospital Merger Case

After a preliminary injunction was struck down, the FTC quickly filed an appeal, which means the agency is likely to keep pushing the case, Douglas said.

“You can infer that pretty reasonably, I think, from the speed with which they appealed and the depth and breadth of their appeal,” he said. “They wasted no time.”

He also noted that he thinks the FTC views the blocked injunction as “more of a pit stop or a detour.”

Though denying a long-term injunction, the judge did agree to extend the transaction freeze for an additional 10 days.

Douglas said, “If the FTC is going to move this quickly on a transaction that affects a relatively compressed geographic area and a relatively smaller population of individuals because it’s in a rural area, then that to me demonstrates that the FTC has reached a level of scrutiny that will be sustained.”

He added that this will become more apparent as hospitals seek solutions for financial troubles.

“Hospital transactions are just going to increase as hospitals look for partners to sustain their operations, and the FTC is going to keep looking at those transactions,” he said.

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