With that brief background of Antitrust law in mind, what do you folks think about this little deal between Omnicare and Manor Care?
Omnicare and Manor Care formed a partnership on February 16, 1994, called Heartland Healthcare Services. The partnership is still in place, and is operated through a management committee consisting of three Manor Care Executives and three Omnicare Executives (Manor Care 2006 10K).
In its short history, Heartland has established an institutional pharmacy in Toledo, Ohio supporting Ohio and Michigan HCR facilities and two institutional pharmacies in Florida serving HCR and other long-term facilities.
This cozy partnership also includes the Heartland Repack Services, which they recently shut down after a fire, a massive recall (119 pages of recalled drug NDCs), and a damning FDA Warning Letter. - Related Article: Repackager's Recall Could Lead to FDA Visit.
Omnicare contracted with Cardinal to handle Heartland's Repackaging.
Earlier this year, Manor Care agreed to be acquired by private-equity giant Carlyle Group in a $6.3 billion deal (Manor Care Finds a Buyer). In this deal Manor Care will be absorbed by a Carlyle Group entity, ManorCare Health Services, Inc. ("MCHS") (Special Meeting Demand).
But now,what seemed to be a done deal, is coming under increased scrutiny - Florida lawmakers and a union are questioning a private equity firm's pending purchase of the nation's largest nursing home chain.
We learned recently that UnitedHealth received a Subpoena regarding Omnicare patient steering. You don't suppose that subpoena has anything to do with the Heartland partnership?
Do you suppose this Heartland partnership violates anti-trust laws? Do you think that the Long term Care Facilities which make up this partnership might be more than happy to pay inflated prices for drugs which are provided through this little off-the-books joint venture?
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