Carilion Says Acquisition of Orthopedics Practice Won’t Violate its FTC Consent Order

Carilion Clinic said its acquisition of 10-physician Roanoke (Va.) Orthopaedic Center will not violate a consent order it signed with the Federal Trade Commission that limits its merger activity, according to a report by the Roanoke Times.

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The orthopedics practice will join Carilion Bone and Joint to form a new practice in Roanoke called Carilion Clinic Orthopaedic, which will be part of Carilion Clinic, a multispecialty practice in Roanoke with 600 physicians and eight hospitals that changed its name from Carilion Health.

Hugh Hagan, MD, president of Roanoke Orthopaedic Center, said his practice had approached Carilion about a merger two years ago, attracted by the health system’s conversion from a traditional hospital system to a physician-led clinic model.

Carilion has had to be careful about acquisitions because the FTC earlier this year found that its acquisition of two outpatient clinics would have stifled competition, and Carilion agreed to sell the clinics.

But a Carilion spokesman said the orthopedics merger does not violate Carilion’s consent order with the FTC because the agreement does not apply to practices that approach Carilion about mergers and the merger talks began before the consent order took effect.

Read the Roanoke Times‘ report on the merger of Roanoke Orthopaedic Center with Carilion Clinic.

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