MEMPHIS, Tenn. — Saint Francis Healthcare announced the proposed merger of its system with Methodist Le Bonheur Healthcare will not take place.
The company said the two entities jointly decided to no longer pursue the sale.
“We have determined that the best course for both organizations is to continue serving our communities independently,” said Saint Francis Healthcare CEO Sally Hurt-Deitch. “While we will no longer bring our hospitals together with Methodist Le Bonheur, we continue as neighbors, both contributing to a positive community impact. This decision maintains our ability to provide excellent care to our patients, and doesn’t change – or compromise in any way – our longstanding promise to enhance access to care, cutting-edge medical technology and the highest quality physicians and staff. Looking ahead, we remain focused on serving the areas of greatest need as anchors of compassionate care in our communities.”
Back in December, Methodist Le Bonheur Healthcare revealed a plan to buy Saint Francis Hospitals in Bartlett and Memphis.
In November 2020, the Tennessee’s Attorney General’s Office and the Federal Trade Commission filed a lawsuit to stop the hospital merger.
“The numbers are striking,” Attorney General Herbert Slatery stated in a release at the time. “If this deal were to go forward, Methodist would control roughly 60% of the inpatient General Acute Care (GAC) market in Memphis. That’s nearly twice the share of its next closest competitor. We have concluded that if Methodist controlled that much of the market, Tennesseans in Memphis would face higher prices and fewer options for their healthcare.”
“Methodist, which already operates the major children’s hospital in the Memphis area that all insurers want in their networks, would also control seven of the twelve hospitals serving the adult GAC market, including the only hospital in Bartlett,” he added. “We are not convinced that any positive effects of the proposed transaction would offset the harms it would cause.”
