LANSING, Mich., Oct. 4 /PRNewswire/ -- Attorney General Mike Cox announced today that his office has reached an antitrust settlement with two of the nation’s largest providers of kidney dialysis services that will allow the two companies to merge while preserving the competitive atmosphere necessary to protect more than 11,000 Michigan patients.
“To protect Michigan consumers and a competitive environment, corporate mergers will not be given carte blanche approval by my office, especially when the lives of so many depend upon the services and products the merging companies provide,” said Cox.
Cox reached the settlement with California-based DaVita, Inc. and Colorado-based Gambro Healthcare, Inc. after a joint investigation with the Federal Trade Commission (FTC) and the California Attorney General’s office. The investigation followed the two companies’ announcement in December 2004 that DaVita intended to purchase Gambro’s United States dialysis business. The proposed transaction is valued at more than $3 billion.
DaVita is the largest independent provider of dialysis services in the United States, providing dialysis services to nearly 55,000 patients afflicted with end stage renal disease via 665 outpatient centers in 37 states and the District of Columbia. In Michigan, DaVita operates 30 clinics in areas including Detroit, Flint, Jackson, Grand Rapids, Grand Haven, Battle Creek, Ypsilanti, and Muskegon that serve more than 2,500 patients. Gambro Healthcare, Inc. operates more than 550 dialysis clinics nationwide in 38 states serving more than 43,000 patients. Gambro’s Michigan operations consist of 16 facilities in areas including Dearborn, Detroit, Fremont, Jackson, Ludington, Muskegon, Rockford, Romulus, Southfield, Southgate, Westland, Wyoming, and Zeeland serving more than 1,500 patients.
The settlement will allow DaVita and Gambro to merge, conditioned upon the divestiture of 67 clinics nationwide. To protect Michigan patients, and to preserve competition in the Grand Rapids, Jackson, Muskegon, and Holland areas of the state, the parties are required to divest five clinics to another dialysis provider, Renal Advantage. The Michigan clinics to be sold are Gambro Healthcare - Clyde Park, Gambro Healthcare - Jackson, Gambro Healthcare - Rockford, Gambro Healthcare - Zeeland, and DaVita Roosevelt Park.
Cox filed a complaint and Stipulated Order to Maintain Assets in Ingham County’s 30th Circuit Court today, which will allow for the merger and sale of the five Michigan clinics. Cox and the parties will file a Consent Judgment finalizing the Michigan settlement in mid-October. The FTC has accepted the proposed national settlement for public comment. The Attorney General for the State of California has separately filed merger and divestiture papers in the U.S. District Court for the Central District of California.
Michigan Attorney General
CONTACT: Allison Pierce of Michigan Attorney General’s office,+1-517-373-8060
Web site: http://www.michigan.gov/ag/
