Antitrust Advisory: FTC Denies Dialysis Clinic a License to Raise Prices to Medicare


A recent Federal Trade Commission (FTC) order imposing conditions on a licensing agreement between Fresenius Medical Care and Luitpold Pharmaceuticals is an uncommon example of enforcement action in a vertical transaction, and is evidence that the FTC will occasionally challenge a deal term that would otherwise be considered reasonably ancillary to a normalcourse transaction. The FTC?s focus in this case was not upon the usual issue of market concentration, but rather on the potential for the licensee to inflate its reported costs to Medicare.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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