KUCINICH CONTINUES HIS STRONG EFFORT ON BEHALF OF SAVING LAKEWOOD
HOSPITAL:
New Filing at Federal Trade Commission Raises More Questions about Clinic Conduct
LAKEWOOD, OHIO (May 17) - - The Save Lakewood Hospital Committee today released a
letter which former Congressman Dennis J. Kucinich personally delivered to the Federal Trade
Commission (FTC) on Friday, May 13, 2016 which asks the FTC to determine if the Cleveland
Clinic failed to make a required filing under the Hart-Scott-Rodino Act (H-S-R), in its
machinations involving its planned termination of in-patient care at Lakewood Hospital.
Kucinich, who served Lakewood and the greater Cleveland area in the US House for 16 years
submitted the filing as part of a continuing battle at the FTC which began with an extensive brief
filed last October.
In the latest complaint, (see attachments) Kucinich raises three points:
(1) There is no evidence that a mandatory filing was made regarding the Clinic's Lakewood
transaction. Across America, larger hospital systems have been taking over smaller health care
systems, flying under the regulatory radar of the FTC through various maneuvers
of questionable legality. Kucinich pointed out that the asset value of Lakewood Hospital is at
least $120 million; a consultant valued the hospital at $70 million, and an associated investment
pool at $50 million. “Even viewing the transaction as the wind-down of a collaboration, such as
a joint-venture, it still should have been reviewed under the H-S-R Act, because of the value of
the assets involved in the deal,” Kucinich wrote.
(2) Kucinich raises the question as to whether the Clinic sought to avoid a filing under HartScott-Rodino, in order to avoid FTC scrutiny of the Clinic's market concentration in the greater
Cleveland area, through a review known at the Herfindahl-Hirschman Index. “If H-S-R filings,
though required, are simply not made, regulators lack sufficient information to prompt a
Herfindahl-Hirschman Index (“HHI”) review to determine market concentration.”
(3) Kucinich raised questions of improper bidding procedures. “There is reason to believe,
based upon documentary evidence, that the transaction which led to the closing of Lakewood
Hospital was steered to Cleveland Clinic by virtue of that party’s active participation in the
development of the offering process; and that during the offering process Clinic employees, or
trustees had access to review offers of its competitors.” Kucinich submitted documentary
evidence of the efforts of a second bidder.
Marguerite Harkness, Chair of the Save Lakewood Hospital Committee, said, “Congressman
Kucinich has raised serious questions which deserve the attention of the Federal Trade
Commission. He is speaking for many people in the community who feel that the entire
Lakewood Hospital deal stinks.”
Tom Monahan, Vice-Chair of Save Lakewood Hospital Committee said, “It is inspiring that
Kucinich repeatedly comes to our defense when our own local public officials keep selling us
out. He's still involved and that's very good for our community.”
Save Lives, Save Jobs, Save Lakewood, Save Lakewood Hospital
Related files: letter to FTC, supporting documents
For questions and comments, contact:
Dennis J. Kucinich
www.Kucinich.com
Kevin Young
Media Relations
Save Lakewood Hospital Committee
216-344-0743