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March 05, 2020

FTC Seeks to Block Merger of Two Pennsylvania Hospital Networks

The FTC filed a complaint to block the merger of Thomas Jefferson University and Albert Einstein Healthcare Network, citing anticompetitive conduct prohibited under Section 5 of the FTC Act, 15 U.S.C. § 45 and Section 7 of the Clayton Act, 15 U.S.C. § 18. The complaint alleges the two hospital networks are direct competitors and leading providers of inpatient general acute care and inpatient acute rehabilitation services in Philadelphia and Montgomery Counties, PA. Combining the networks would consolidate general acute care services to 60% of the market in Philadelphia County and 45% in Montgomery County, thereby drastically decreasing competition to the detriment of consumers, according to the complaint.