The Detroit Medical Center wants a judge to block the merger between the Karmanos Cancer Institute and McLaren Heath Care.
Detroit Free Press: In the filing, DMC says Karmanos purchased its cancer treatment business in 2005 for $9.9 million, called a “sweetheart deal” by DMC at the time. In exchange for that bargain price, Karmanos agreed to exclusivity with DMC hospitals forever. The agreement specifically restricts Karmanos from affiliating with another “academic medical center.”
It also requires Karmanos to always market and promote itself on its website and within Wayne, Oakland and Macomb counties as “affiliated with the Detroit Medical Center.”
McLaren and the Karmanos Canter Institute claim the DMC didn't keep their end of the 2005 agreement and the enforcing that deal's exclusivity rules violates anti-trust laws.
