FTC nixes area hospital merger Posted On: Thursday, Nov. 12 2009 05:30 AM By Matt Goodman
Killeen Daily Herald

Scott & White Hospital in Temple announced last week that the Federal Trade Commission nixed its April merger with King's Daughters Hospital, declaring it "anti-competitive." The FTC would not comment on the investigation, as it is ongoing.

King's Daughters incurred a 42 percent drop in inpatient volume during the last fiscal year, forcing it to either merge with another entity or end its 113-year presence in Central Texas.

Seton Family of Hospitals, a network of 31 facilities throughout the region, and Scott & White both were attempting to merge with King's Daughters. But in February, King's Daughters announced it would be entering a non-disclosure agreement with Scott & White. By April 1, the two had merged.

Scott & White planned to turn King's Daughters into a pediatric hospital, but the FTC ruling has reopened the deal with Seton. If Seton merges with the hospital, it will be operated as an adult acute care hospital, said Mark Hazlewood, president of Seton North Market.

"Central Texas continues to grow," Hazlewood said. "We see that is a need that needs to be met and King's Daughters is a natural extension for us."

If the merger falls through with Seton and King's Daughters, the hospital will remain a Scott & White facility and become a pediatric care center, Scott & White spokesman Scott Clark said.

"Scott & White remains committed to developing enhanced services for children and families in Central Texas, and will look for alternative strategies should our offer to the other health care organization be accepted," Clark said in an e-mail.

Contact Matt Goodman at mgoodman@kdhnews.com or (254) 501-7550.