A federal appeals court on Tuesday upheld a key victory in the Federal Trade Commission’s most litigated case challenging a hospital chain’s acquisition of a physician group.

The FTC and the state of Idaho sued to block St. Luke’s Health System Ltd.’s 2012 acquisition of Saltzer Medical Group P.A., claiming the deal would raise prices for consumers in Nampa, the second largest city in Idaho, in violation of the U.S. Clayton Act and the Idaho Competition Act.

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