FTC And Pennsylvania Challenge Merger Of Major Philadelphia-area Hospitals

The Federal Trade Commission (FTC) has authorized an action to block the proposed merger of Jefferson Health and Albert Einstein Healthcare Network, two leading providers of inpatient general acute care hospital services and inpatient acute rehabilitation services in both Philadelphia County and Montgomery County, Pennsylvania.

The FTC issued an administrative complaint alleging that the proposed merger would reduce competition in both Philadelphia and Montgomery counties.

According to the complaint, Jefferson and Einstein have a history of competing against each other to improve quality and service, including by upgrading medical facilities and investing in new technologies. The proposed merger would eliminate the robust competition between Jefferson and Einstein for inclusion in health insurance companies’ hospital networks to the detriment of patients.

“Patients in the Philadelphia region have benefited enormously from the competition between the Jefferson and Einstein systems,” said Ian Conner, Director of the FTC’s Bureau of Competition. “This merger would eliminate the competitive pressure that has driven quality improvements and lowered rates. Throughout our investigation, we have benefited from close cooperation with our partners in the Office of the Attorney General of Pennsylvania.”

The Commission has authorized staff to seek a temporary restraining order and a preliminary injunction to prevent the parties from consummating the merger, and to maintain the status quo pending the administrative proceeding. The FTC, jointly with the Pennsylvania Attorney General, will file a complaint in federal district court.

Full Content: FTC

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