The Federal Trade Commission (FTC) recently filed an administrative challenge to an already consummated acquisition of St. Luke’s Hospital by ProMedica Health System. The challenge seeks divestiture of all assets acquired by ProMedica and the restoration of “two separate, viable and independent businesses.” The FTC’s complaint alleges that the acquisition gives ProMedica market power in Lucas County, Ohio, with respect to general acute care inpatient services and obstetrical services. The FTC alleges ProMedica is likely to use its market power to raise reimbursement rates above competitive levels. In addition, the FTC claims that the acquisition will decrease the quality of hospital services in the market. In a press release, ProMedica claims the “joinder” is a response to health care reform and will enhance the clinical and service line integration required by recent health care reform and that the FTC’s action is inconsistent with those reform initiatives. This case is an important example of the potential risks associated with the active hospital merger and acquisition market, which has experienced dramatic consolidation following the passage of health care reform. However, despite this trend, the FTC will continue to closely scrutinize those mergers and acquisitions that result in market power, regardless of the health care reform incentives associated with consolidation