FTC gives go-ahead to Tenn. merger

The Federal Trade Commission has given the green light to a Tennessee hospital deal between two not-for-profits, according to the commission.

Covenant Health, Knoxville, will add its eighth hospital in 143-bed Morristown-Hamblen Healthcare System, Morristown, and has agreed to spend nearly $100 million combined on capital projects and assumption of Morristown-Hamblen's debt, according to Covenant.

Besides the FTC's approval, the deal also requires the approval of the Tennessee attorney general's office.

Covenant and Morristown-Hamblen entered exclusive negotiations in July 2009 and signed a letter of intent in January 2010. On April 9, they announced they had reached a definitive agreement, with closing expected in 60 to 90 days.