John Muir Health terminated its proposed $142.5 million acquisition of San Ramon Regional Medical Center from owner Tenet Healthcare Corp. a month after the Federal Trade Commission and the State of California sought to block the deal in court. 

In papers filed in federal district court last month,  the FTC alleged the purchase would increase healthcare costs and stifle competition. The agency claimed the deal would allow John Muir—which already operates medical facilities in Contra Costa County, California—to demand higher rates at all of its care centers and reduce incentives to invest in quality improvements.