Unanimous Commission Acknowledges “Significant Improvements” in Highland Park Hospital
8/6/2007 - Evanston Northwestern Healthcare (ENH) is thrilled with today’s ruling by the Federal Trade Commission (FTC) that Highland Park Hospital (HPH) will remain within the ENH system. The new group of Commissioners reversed a previous ruling by their own Administrative Law Judge calling for divestiture of Highland Park Hospital following a complaint that its merger with ENH in January 2000 created adverse effects on select HMO’s.
The FTC recognized the “significant improvements” in patient care services at Highland Park Hospital, post merger, as its principal rationale to overturn divestiture, said Mark R. Neaman, President and Chief Executive Officer of Evanston Northwestern Healthcare. “ Our investments in excess of $150 million, at Highland Park Hospital have dramatically improved the breadth, depth and quality of healthcare services in the region. Our success in expanding comprehensive, quality care at competitive prices has increased patient access and treatment, not made “victims” of select HMOs. We are most pleased that this 4-year legal distraction is over, and we can continue to focus our efforts on improving healthcare services for the patients and families we are privileged to serve.”
The ruling also requires ENH to take certain administrative actions in how it negotiates select HMO contracts in the future.
In February 2004, fully four years after the merger, the FTC issued an Administrative Complaint in Washington, D.C. alleging that the merger had created anti-competitive effects. The case went to trial before an FTC Administrative Law Judge in February 2005. After an adverse ruling from the Administrative Law Judge in October 2005, ENH appealed to the full FTC. The Commissioners have today decided to reverse the ruling of their Administrative Law Judge.
More than seven years ago, Evanston Northwestern Healthcare and Highland Park Hospital merged with a promise of improving health care services to the patients and families of Northern Illinois. Since the merger, ENH has kept that promise by creating an integrated delivery system of hospitals, physicians, and clinical research, and by investing heavily in the people, facilities, and new technologies at Highland Park Hospital.
Despite the significant threat of the FTC action, ENH has been unwavering in its commitment to the improvements at HPH and as a part of the greater Evanston Northwestern Healthcare system of care. “We are deeply gratified with the support of our Board of Directors, Physicians and Staff during this difficult period,” said Neaman.