A PYMNTS Company

US: FTC will keep fighting Pa. hospital merger despite court loss

By  |  May 11, 2016

The Federal Trade Commission has decided to continue battling a merger between Penn State Hershey Medical Center and PinnacleHealth System in Harrisburg despite a loss in federal court this week.

Earlier this week, a federal judge rejected the FTC’s request for a preliminary injunction in the Pennsylvania case. Despite that decision, the FTC has filed documents in federal court asking it to temporarily halt the merger while it appeals the judge’s decision to a higher court.

The FTC alleges the merger would lead to higher prices and diminished quality. The merged system, according to the commission’s complaint, would control about 64% of the south-central Pennsylvania market.

In newly filed court documents, the FTC argues that the judge in this case used an incorrect methodology to define the geographic market, among other issues.

Full Content: Modern Healthcare

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.