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Feds Drop Challenge to West Virginia Hospital Takeover

St. Mary's Medical Center

Federal regulators have dropped a challenge to a West Virginia hospital's planned takeover of a nearby hospital.

The Federal Trade Commission announced Wednesday it has dismissed its antitrust challenge to Cabell Huntington Hospital Inc.'s proposed takeover of St. Mary's Medical Center in Huntington.

In November 2014, Cabell Huntington agreed to assume control of St. Mary's after the Pallottine Missionary Sisters ended their sponsorship of the hospital after 90 years.

Last year the FTC said the takeover would likely lead to higher costs to patients and lower quality of care. But the FTC Wednesday noted state lawmakers this year passed a law exempting the merger from state and federal antitrust laws if the West Virginia Health Care Authority approved the merger. The authority approved it last month.

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