Media Mentions
2011
“St. Luke’s says ProMedica Deal Essential to ‘Stop the Bleeding’”
Toledo Blade, February 12, 2011
David Marx told a federal district court hearing into objections over client ProMedica Health System’s acquisition of St. Luke’s Hospital in Toledo that the deal was necessary to maintain the hospital’s financial viability. “St. Luke's is not going to be able to compete successfully for the long term” without being acquired, Mr. Marx explained, adding that the hospital “doesn't have the financial wherewithal on its own to reposition itself as the market demographics change.”
David Marx Jr., Antitrust & Competition, Health - Antitrust
“ProMedica Defends Merger Bid in U.S. District Court”
Toledo Blade, February 11, 2011
David Marx, representing ProMedica Health System in a contested acquisition of a Toledo, Ohio hospital, said that for the FTC to successfully object it must show that post-acquisition health care costs will be higher than competitive rates. Mr. Marx noted that the local market is still competitive, saying, “It's not a point where ProMedica can say, 'Take us, or you won't get treated.”’ He added, however, “The complete truth is Toledo can't afford to support four independent hospitals and systems. It's just not big enough.”
David Marx Jr., Antitrust & Competition, Health - Antitrust
“Federal Trade Commission Wants ProMedica, St. Luke’s Deal on Hold”
Toledo Blade, January 14, 2011
David Marx, Jr., who represents a health system that seeks to acquire St. Luke’s hospital in Toledo, Ohio, said of the FTC’s effort to halt the purchase pending assessment of its impact on health care costs that “the government is not legally entitled to the temporary restraining order that they seek.” Adding that a grant of the order would leave no incentive for his client to make an agreed-upon investment in the hospital, Mr. Marx said such an outcome “will not only harm St. Luke’s, but it will harm the community St. Luke’s serves.”
David Marx Jr., Antitrust & Competition, Health - Antitrust, Trial
2010
David Marx discussed government antitrust investigations of hospital and physician networks in an April 29 Boston Globe story (which also appeared May 2 in the Portfolio.com “Daily Brief”) about a specific such action in Massachusetts. Mr. Marx said that many investigations are closed without a determination that antitrust laws were violated, but noted that “networks that have been found to violate the law have been required to change the way they operate” – for example, by eliminating anti-competitive clauses in contracts with physicians and insurers. “You’re seeing more aggressive enforcement under this administration,” Mr. Marx added. “It’s a priority for the federal government because health care costs are significant, and there is a sense that competition is good.”
David Marx Jr., Antitrust & Competition, Health - Antitrust
David Marx was quoted in a February 19 Law360 story concerning a New York federal judge’s rejection of class certification for a group of nurses whose lawsuit alleges that a group of hospitals in upstate New York violated antitrust laws by conspiring to keep the nurses’ wages low. “We are happy that the judge reaffirmed his previous ruling that even a narrower class could not be certified as to the issues of injury-in-fact and damages,” declared Mr. Marx, who represents an Albany medical center that is one of the defendant in the suit. He added that Judge McAvoy’s ruling was particularly satisfying because it “rejected the plaintiffs’ belated attempt to seek certification of a different class, both because it was procedurally improper and factually unjustified.”
David Marx Jr., Health - Antitrust, Trial
David Marx was quoted by Law360 on February 18 concerning a Chicago federal court’s decision granting summary judgment in favor of Mr. Marx’s hospital client in an antitrust suit brought by developer and operator of medical centers. The suit had contended that the hospital had lobbied local officials in Lake Bluff, IL to reject a building permit for a new medical center. “This case reaffirms the principle that a land or zoning dispute, which frequently pits one competitor against another – like this case did – doesn’t necessarily constitute an antitrust case,” Mr. Marx said. He added that the case “helps illustrate the difference between legislative conduct and adjudicative conduct.”
David Marx Jr., Health - Antitrust, Trial
2008
David Marx was quoted in the December 30 issue of Global Competition Review in an article regarding Inverness Medical Innovations' settlement with the Federal Trade Commission (FTC) on charges that the company illegally sought to maintain its monopoly on pregnancy tests by acquiring assets from competitor ACON Laboratories. Inverness must sell the assets, including an intellectual property license for dye technology. "With this decision, the FTC shows it remains committed to enforcing antitrust laws in the health-care sector," said Mr. Marx. "The FTC has ensured that the market has returned to an even more competitive state than it was before Inverness acquired ACON's assets," he added.
David Marx Jr., Antitrust & Competition, Antitrust - IP, Health, Health - Antitrust, Intellectual Property
David Marx was quoted in the March issue of HealthLeaders in an article regarding the health industry's hospital consolidation wave. Mr. Marx discussed the effects of the FTC's investigation of a 2000 Evanston Northwestern Healthcare (ENH) merger that created a three-hospital system along Chicago's North Shore. Because the ENH case was so unusual in that the FTC waited so long after the merger to investigate, Mr. Marx noted that, "It is not discouraging anybody from doing what they think they need to do to be competitive in the marketplace, and that includes consolidations and collaborative ventures where appropriate." Mr. Marx warned, however, to keep the consumer in mind and remember that the FTC can challenge a merger after the fact, "…think about it from the perspective of the consumer because that's the way the agencies are going to look at the transaction and evaluate it," he said.
David Marx Jr., Health, Health - Antitrust, Hospital and Health System Transactions
2007
David Marx was quoted in the February 17 issue of Modern Healthcare in regard to the Federal Trade Commission's request for additional information on Psychiatric Solutions' proposed acquisition of Horizon Health Corp. "It's indicative of an issue, but not necessarily indicative of a problem," commented Mr. Marx.
David Marx Jr., Antitrust & Competition, Health, Health - Antitrust
2003
David Marx was quoted in the February 17 issue of Modern Healthcare in regard to the Federal Trade Commission identifying health care antitrust as a priority. "To the extent that there is speechifying that isn't promptly followed with enforcement actions, whatever deterrent effects that might be created are lost, particularly, if at the end the day, the only remedy is go forth and sin no more," commented Mr. Marx.
David Marx Jr., Antitrust & Competition, Health, Health - Antitrust
David Marx was quoted in the February 10 issue of Modern Healthcare in an article addressing federal antitrust regulators increasing paying attention to the recent wave of physician job actions aimed at pressuring state legislatures to reform tort laws. Mr. Marx commented that "….when doctors make statements publicly so competitors hear, it becomes a form of signaling….the real issue is where do you cross the line from protected speech to concerted illegal actions."
David Marx Jr., Antitrust & Competition, Health - Antitrust
2002
David Marx was quoted in the September 9 issue of Mergers & Acquisitions Report in regard to the FTC's recent decision to "reinvigorate the Commission's hospital merger program," with the creation of a merger litigation task force. Mr. Marx said that since the FTC hasn't won a case in court on a hospital merger in nearly a decade, most acquiring firms are not concerned about acquisition-related issues as a result of the new task force.
David Marx Jr., Health, Health - Antitrust, Health - M&A, Mergers & Acquisitions
David Marx and James Sneed were quoted in the May 20 issue of Managed Care Outlook in regard to a few recent settlements between physician groups and the Federal Trade Commission regarding price fixing and other anti-competitive behavior. Mr. Marx commented that, "Most of the cases arise from non-risk contracts, where the physician network is supposed to be using a modified messenger model for negotiations, but in actual practice appears to be engaging in collusive price fixing activities." Mr. Sneed commented that the antitrust settlements are not likely to last and that the FTC’s recent actions will deter other doctors.
David Marx Jr., Antitrust & Competition, Health, Health - Antitrust
David Marx was quoted in an article addressing the U.S. Justice Department's Antitrust Division's recent decision to disband its 17-lawyer healthcare task force, published in the February 11 issue of Modern Healthcare. David commented that the state attorney generals' offices, who will now handling the responsibility of the task force, are sometimes "in deep hibernation, but some are not." He also mentioned that the antitrust lawyers in the state office are increasingly educated, trained and experienced.
David Marx Jr., Antitrust & Competition, Health, Health - Antitrust
David Marx was quoted in the January 14 issue of Modern Healthcare in regard to the recent reorganization at the U.S. Justice Department, which eliminated the antitrust division’s 17-attorney health care task force. Mr. Marx pointed out that the FTC nor the Justice Department has prevailed in a hospital merger court case in 10 years, "Hospitals won that war."
David Marx Jr., Antitrust & Competition, Health - Antitrust
2001
David Marx was quoted in the December 3 issue of Modern Healthcare regarding the tendency of government antitrust regulators not to get involved in cases they don't see, which serve the broad public interest. The focus of the article was the rise of antitrust lawsuits by commercial health insurers against hospitals and hospital-owned managed care plans.
David Marx Jr., Health, Health - Antitrust
David Marx was quoted in the November 19 issue of Modern Healthcare in regard to a federal consent decree forbidding contract negotiations between independent doctors and insurers for the Federation of Physicians and Dentists in Tallahassee, Florida.
David Marx Jr., Antitrust & Competition, Health, Health - Antitrust
David Marx was quoted in the October 29 issue of Modern Healthcare in response to the U.S. Justice Department’s decision to bar a Florida-based labor organization from acting as a collective-bargaining agent for competing doctors. Mr. Marx considers the decision a defeat for physicians, "who might consider unions to be a potential safe haven for otherwise collective negotiations with payers."
David Marx Jr., Antitrust & Competition, Health, Health - Antitrust
