SAINT ALPHONSUS MEDICAL CENTER-NAMPA v. ST. LUKE'S

No. 14-35173.

778 F.3d 775 (2015)

SAINT ALPHONSUS MEDICAL CENTER-NAMPA INC.; Saint Alphonsus Health System Inc.; Saint Alphonsus Regional Medical Center, Inc.; Treasure Valley Hospital Limited Partnership; Federal Trade Commission; State of Idaho, Plaintiffs-Appellees, and Idaho Statesman Publishing, LLC; The Associated Press; Idaho Press Club; Idaho Press-Tribune LLC; Lee Publications Inc., Intervenors, v. ST. LUKE'S HEALTH SYSTEM, LTD.; St. Luke's Regional Medical Center, Ltd.; Saltzer Medical Group, Defendants-Appellants.

United States Court of Appeals, Ninth Circuit.

Filed February 10, 2015.


Attorney(s) appearing for the Case

Brian K. Julian , Anderson, Julian & Hull LLP, Boise, ID, for Defendant-Appellant Saltzer Medical Group.

J. Walter Sinclair , Brian C. Wonderlich , Holland & Hart LLP, Boise, ID; Jack R. Bierig (argued), Scott D. Stein , Charles K. Schafer , Ben Keith , Tacy F. Flint , Sidley Austin LLP, Chicago, IL, for Defendants-Appellants St. Luke's Health System, Ltd. and St. Luke's Regional Medical Center, Ltd.

Keely E. Duke , Duke Scanlan Hall PLLC, Boise, ID; David A. Ettinger (argued), Honigman Miller Schwartz & Cohn LLP, Detroit, MI, for Plaintiffs-Appellees Saint Alphonsus Medical Center-Nampa Inc.; Saint Alphonsus Health System Inc.; Saint Alphonsus Regional Medical Center, Inc.

Raymond D. Powers , Portia L. Rauer , Powers Tolman Farley, PLLC, Boise, ID, for Plaintiff-Appellee Treasure Valley Hospital Limited Partnership.

Lawrence G. Wasden , Attorney General, Brett T. DeLange , Deputy Attorney General, Boise, ID, for Plaintiff-Appellee The State of Idaho.

Deborah L. Feinstein , Director, Bureau of Competition, J. Thomas Greene , Peter C. Herrick , Henry C. Su , Jonathan E. Nuechterlein , General Counsel, David C. Shonka , Principal Deputy General Counsel, Joel Marcus (argued), Washington, D.C., for Plaintiff-Appellee The Federal Trade Commission.

Barbara D.A. Eyman , Eyman Associates, PC, Washington, D.C., for Amicus Curiae America's Essential Hospitals.

Lynn S. Carman , Natallia Mazina , Medicaid Defense Fund, San Anselmo, CA, for Amici Curiae International Center of Law & Economics and Medicaid Defense Fund.

Joe R. Whatley, Jr. , Edith M. Kallas , Whatley Kallas, LLP, New York, NY, for Amici Curiae Economics Professors.

Donald M. Falk , Mayer Brown LLP, Palo Alto, CA; Robert E. Bloch , Michael B. Kimberly , Mayer Brown LLP, Washington, D.C., for Amicus Curiae The Association of Independent Doctors.

Joseph M. Miller , Michael S. Spector , America's Health Insurance Plans; Pierre H. Bergeron , Mark J. Botti , Squire Patton Boggs (US) LLP, Washington, D.C., for Amicus Curiae America's Health Insurance Plans.

Bruce L. Simon , Pearson, Simon & Warshaw, LLP, San Francisco, CA; Alexander R. Safyan , Pearson, Simon & Warshaw, LLP, Sherman Oaks, CA, for Amicus Curiae Catalyst for Payment Reform.

Kamala D. Harris , Attorney General of California, Mark Breckler , Chief Assistant Attorney General, Kathleen E. Foote , Senior Assistant Attorney General, Emilio Varanini , Deputy Attorney General, San Francisco, CA; Robert W. Ferguson , Attorney General of Washington, Darwin P. Roberts , Deputy Attorney General, Jonathan A. Mark , Chief, Antitrust Division, Stephen T. Fairchild , Assistant Attorney General, Seattle, WA; Kathleen G. Kane , Attorney General of Pennsylvania, James A. Donahue, III , Executive Deputy Attorney General, Tracy W. Wertz , Chief Deputy Attorney General, Jennifer A. Thomson , Senior Deputy Attorney General, Harrisburg, PA; George Jepsen , Attorney General of Connecticut, Hartford, CT; Joseph R. Biden III , Attorney General of Delaware, Wilmington, DE; Lisa Madigan , Attorney General of Illinois, Carolyn E. Shapiro , Solicitor General, Chicago, IL; Thomas J. Miller , Attorney General of Iowa, Des Moines, IA; Jack Conway , Attorney General of Kentucky, Frankfort, KY; Janet T. Mills , Attorney General of Maine, Augusta, ME; Douglas F. Gansler , Attorney General of Maryland, William F. Brockman , Deputy Solicitor General, Baltimore, MD; Jim Hood , Attorney General of Mississippi, Jackson, MS; Tim Fox , Attorney General of Montana, Helena, MT; Catherine Cortez Masto , Attorney General of Nevada, Carson City, NV; Gary K. King , Attorney General of New Mexico, Santa Fe, NM; Ellen F. Rosenblum , Attorney General of Oregon, Salem, OR; Robert E. Cooper, Jr. , Attorney General of Tennessee, Nashville, TN, for Amicus Curiae The States of California, Washington, Pennsylvania, Connecticut, Delaware, Illinois, Iowa, Kentucky, Maine, Maryland, Mississippi, Montana, Nevada, New Mexico, Oregon, and Tennessee.

Before: RICHARD R. CLIFTON, MILAN D. SMITH, JR., and ANDREW D. HURWITZ, Circuit Judges.


OPINION

This case arises out of the 2012 merger of two health care providers in Nampa, Idaho. The Federal Trade Commission ("FTC") and the State of Idaho sued, alleging that the merger violated § 7 of the Clayton Act, 15 U.S.C. § 18, and state law; two local hospitals filed a similar complaint. Although...

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