Saturday, September 12, 2009
Carilion, FTC to extend talks
The FTC had said Carilion's purchase of two outpatient centers violated antitrust laws.
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Carilion Clinic and the Federal Trade Commission will continue settlement discussions for another month in a dispute that began after Carilion purchased two outpatient centers in August 2008.
The Roanoke-based company and the government agency had been granted until Friday to reach a settlement agreement or return to adjudication. The order giving the two permission to discuss a settlement was extended Wednesday until Oct. 14. The extension was made public Friday.
"There are some technical aspects regarding the agreement or settlement that haven't been completed," said Paul Nolan, a lawyer for the FTC. "Progress has been made."
The FTC filed an administrative complaint July 24 challenging Carilion's purchase of the Center for Advanced Imaging and the Center for Surgical Excellence. Both Roanoke outpatient facilities had been independently operated by Odyssey Imaging LLC and were marketed as low-cost, independent alternatives to Carilion.
The FTC argued the purchase violated antitrust laws creating a void in competition for outpatient imaging and surgical services in Roanoke that could ultimately raise the cost of health care.
Two weeks after the complaint was filed, Carilion offered to sell the two centers and asked for permission to begin settlement talks.
"We're continuing to talk with the FTC and hope to have it resolved in a timely fashion," Carilion spokesman Eric Earnhart said.
Earnhart added that Carilion had anticipated that it may take more than the initial 30 days to reach a settlement agreement.
Neither side would comment on whether a potential buyer had been identified. Nolan, however, said that as a matter of general practice, settlement agreements can either identify a particular buyer, or stipulate a time frame and manner for divesting the properties.
