This report originally appeared in the September 2009 issue of DOTmed Business News

Federal: FTC Challenges Acquisitions by Carilion, Thoratec

The Federal Trade Commission (FTC) has authorized a lawsuit to block Thoratec Corporation's proposed $282 million acquisition of medical device maker HeartWare International, Inc. They also issued an administrative complaint challenging Carilion Clinic's 2008 acquisition of two outpatient clinics in the Roanoke, VA, area, according to FTC press releases.

In the Throatec case, the FTC says the acquisition transaction would "substantially reduce" competition in the U.S. market for left ventricular devices (LVADs). The FTC's administrative complaint alleges that Thoratec seeks to maintain its current monopoly by acquiring HeartWare, the only significant rival to Thoratec's LVAD market dominance. The FTC plans to seek a preliminary injunction in federal court to stop the transaction and limit harm to competition. The FTC says HeartWare's device, the HVAD, is currently in clinical trials and is positioned to be the next FDA-approved LVAD.

In the Carilion matter, the FTC notes that prior to acquisition the clinics in question-Center for Advanced Imaging (CAI) and the Center for Surgical Excellence (CSE)-"had strong reputations for offering high-quality care and convenient services at prices much lower than Carilion's." The FTC alleges Carilion's acquisition of these outpatient centers eliminated vital competition and will lead to higher health care costs. The complaint seeks divestiture of the centers and related assets necessary in order to restore the competition eliminated by the acquisition. A complaint is not a finding or ruling that the defendants have actually violated the law.

State: New North Carolina Law on Mental Health Facility Transparency

North Carolina Governor Bev Perdue has signed legislation increasing the transparency of state mental health, developmental disability and substance abuse facilities, and making more information in death records public. According to the Governor's press release, she had proposed the legislation in March with North Carolina Attorney General Roy Cooper.

"This legislation puts the safety of our patients first by ensuring that important information in death records is available to the public," Governor Perdue said on her website. "By increasing transparency, we will make state facilities more accountable to the people in their care, restore public confidence and rebuild public trust." AG Cooper stated, "More disclosure can shine a light on problems and help ensure patients' safety."

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