Spokane7
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April 2, 2011 in City
Providence’s purchase of heart centers derailed
FTC nixed cardiology deal, sources say
Providence Health Care’s plan to buy two large cardiology practices in Spokane may have been abandoned in the wake of a ruling by federal antitrust regulators.
The Federal Trade Commission began reviewing Providence’s proposed purchase of Spokane Cardiology and Heart Clinics Northwest last year. While the clinics and Providence – which operates Providence Sacred Heart Medical Center – envisioned closing the deal last fall, the subsequent FTC review altered those plans.
Providence spokesman Joe Robb declined to answer questions regarding the FTC ruling. Providence also declined a request to release documentation related to the FTC’s review. Robb said, however, that Providence still plans to create its Providence Spokane Heart Institute within the Sacred Heart campus.
Although several sources with knowledge of the negotiations indicated that the FTC rejected the proposal, the federal agency hasn’t decided whether to publicly release its ruling on the Providence case, said Leonard Gordon, director of the FTC’s Northeast Region in New York City. Many FTC actions involving privately held companies such as the cardiology practices in Spokane and nonprofit entities such as Providence are kept confidential, he said.
Robb, the Providence spokesman, also declined to comment on whether the hospital and the cardiology clinics are renegotiating to salvage some sort of alliance.
Administrators of the two cardiology practices could not be reached for comment.
The financial terms of the original deal were never released. When it was announced last July, Providence Spokane CEO Andrew Agwunobi characterized the cost as significant but an important step in Providence’s plans to build a major center for patients seeking heart care.
The deal would have brought every independent cardiology practice in Spokane under the ownership of one of Spokane County’s two hospital systems.
Cardiology practices are joining with hospitals across the nation as physicians swap their private practices for a salary. Driving consolidations are reimbursement reductions to cardiology clinics.
Though hospitals have struggled with cardiology reimbursements from the federal government’s Medicare and Medicaid programs, their reductions have been less than those offered private cardiology groups.
In particular, Medicare has shaved payments for many cardiology tests, even as physicians invest in equipment and incorporate the expertise into their practice. And reimbursements for catheter procedures has fallen, too, as the government’s financially burdensome Medicare program seeks ways to cut costs.
At the same time, an FTC study reports widespread concern in the health care industry and among patient groups about the loss of competition as cardiologists align with hospitals.
Two years ago the FTC signed off on the $50 million sale of Rockwood Clinic to Community Health Systems Inc.
That deal aligned Rockwood, including its cardiology practice, with CHS hospitals Deaconess Medical Center and Valley Hospital and Medical Center. It also ignited a flurry of moves by both Providence and CHS to collect clinics and pin down admissions loyalties from physicians and especially their insured patients.
In the wake of the Rockwood deal, Providence attempted to buy the two cardiology practices and later announced a new collaboration with Group Health.
CHS then purchased Inland Cardiology Associates last December.
Inland Cardiology is moving into the remodeled 10th floor of the Deaconess Health and Education Center. Rockwood – including its cardiology practice – is moving into the eighth and ninth floors.
Despite the competition between the hospitals, CHS did not ask the FTC to review the Providence cardiology buyout, said Deaconess spokeswoman Julie Holland.
“The FTC sent us a questionnaire,” she said. “I’m told that we complied with their request.”
CHS declined to release a copy of its correspondence with the FTC.
The company has not received notice of the FTC ruling, Holland said.
Parishes giving $1.5 million toward settling sex cases 
Ninch on April 02 at 8:38 a.m.
Unintended consequences of Obamacare…”At the same time, an FTC study reports widespread concern in the health care industry and among patient groups about the loss of competition as cardiologists align with hospitals.” So loss of competition is going to save health care costs HOW? Or is Obamacare a ruse to rationalize moving to nationalize the US health care system (ergo an intended consequence)?
Dazzeetrader11 on April 02 at 8:50 a.m.
Nin ch if you knew how much more the hosptials bill out services when the MD works for the hospitll you’d choke.
They then pass a large fraction along to the doctor. The MD don’t want to be owned by the hospitals…it’s protection for them. Terrible loss of independence.
Julia70 on April 02 at 11:36 a.m.
Hello? Health care is about saving lives, keeping people healthy. Right? President Obama’s healthcare plan is a great start to helping people and saving lives. Your main concern is about getting’ rich off the sick and dying. Your solution, if you can’t afford the heart cath, PTCA, or the CABG, just die quickly. There are approximately 46 million people in this country without health insurance. U.S. Census Bureau, 2008. The private insurance companies can no longer deny you coverage because of pre-existing conditions, or if you are too sick they can’t dump ya. Read Wendell Potter’s (former CEO of Cigna) testimony before the U.S. Senate Committee on Commerce, Science and Transportation, June 24, 2009. Here’s the way it should work, if you can’t afford the high cost of the private plans a public option should be available for those that want it, if you don’t just keep makin’ the “I’m gettin’ rich off the sick and dying,” private insurance companies richer. Health care for all. It’s the right of every citizen, not a privilege reserved for rich. Also read Underpayments to Consumers by the Health Insurance Industry, Office of Oversight and Investigations, June 24, 2009. People are forced to seek care in the Emergency Departments of Hospitals because they have no access to a doctor. The current trend now is, We’re sorry we aren’t accepting any new Medicare patients,” or if you don’t have insurance and can’t pay, they won’t see ya, (just die quickly). Dumpin’ the patients to the ED, good ole’ U.S. Health care plan.
Thank you President Reagan for signing EMTALA into law in 1986. You probably saved a million lives.
Thank you President Obama for doing your best to pass a law that will save lives,
You are your brother’s keeper. Yes we are!
“EMTALA was passed to combat the practice of “patient dumping”, i.e., refusal to treat people because of inability to pay or insufficient insurance, or transferring or discharging emergency patients on the basis of high anticipated diagnosis and treatment costs. The law applies when an individual with a medical emergency “comes to the emergency department,” regardless of whether the condition is visible to others, or is simply stated by the patient with no external evidence.
salestopdog on April 02 at 1:45 p.m.
Hey Julia…
I must have missed that one in the bill of rights… Health care is a right? It may be a moral obligation…. but it is NOT a Right. One if the big reasons health care is so expensive is that your 46 million people keep showing up for treatment. They dont pay taxes. They dont have insurance. The NEVER pay the hospital bill. They just keep leaching, having babies and exacerbating the problem. Taking their welfare checks to Walmart buying Ho Ho’s and Mountain Dew, getting fatter and more unhealthy. And we keep enabling them. Wow! I can get food stamps, free housing, a welfare check to keep my booze and smokes around.. and now free healthcare too? Sounds like a sweet alternative to being a responsible adult.
Harsh? Maybe… I am sick of helping those who will not help themselves. If you have a kid, YOU are responsible for feeding, housing, and providing for… not the govt. If you cant afford a kid don’t have one.
How about people rely on “personal responsibility” rather than my “moral obligation.”
Bring back Darwin… worked pretty well up until FDR.
de3 on April 02 at 1:54 p.m.
According to the Congressional Budget Office, after enactment and full implementation of “ObamaCare”, approximately 30 million will remain without health insurance coverage or access.
Most services are charged at a rate of $10 to $30 per minute of access to services, whether it be for a routine office visit or more critical access. For the majority, this is paid for by “someone else” and most are not aware of what is being billed.
In the story above, the FTC raised important anti-trust issues that need to be addressed. Providers are merging and insurance companies are merging - both are taking steps to position themselves to maximize profit, not saving lives.
bdr on April 02 at 2:17 p.m.
See just as you and Insurance companies are bursting at the seams trying to pay for simple care, Conglomerates like this are flush with money ready to Monopolize, game, and gang bang the system
reservedparking on April 02 at 2:53 p.m.
Hey S-R, how about keeping trollspam like coswill out of the forums?
Julia70 on April 03 at 10:30 a.m.
It’s not a right? Why did Jesus say, heal the sick, feed the hungry. Yes, we pay taxes, but there are those who are unable to work, and those that are mentally challenged, and there are those that are out of work. Not everbody can be a rocket scientist, God gives us rights, not the Bill of Rights. That’s man’s judgement, I’ll stick with Jesus. God determines what is right not the Bill of Rights, so what you are saying is, if you or your children are sick and can’t afford health care , just die quickly, Thanks for confirming what I have said about the US healthcare system. By the way I pay 25% taxes and I would certainly pray that some of my tax dollars go for health care for those who are less fortunate. The rich corporates pay very little taxes, thanks to the right wing conservatives. So you don’t like welfare, well this is welfare for the richest Americans. Now that’s the kind of welfare we can do without, If you ask me that’s really sick.
Revisiting the Bill of Rights, please remember that entire groups of people were left out, African Americans, Women, Native Americans (who were stripped of their land) and it took 135 years to grant Native Americans citizenship. Also there was a “race exception,” in the Constitution. Years later the 13th Amendment Abolition of Slavery was passed. It took another 78 years to give African Americans the right to vote. What year was it women were given the right to vote, 1920?
Democracy is a work in progress Health Care for all, it is a right.