On Tuesday, the Federal Trade Commission upheld a decision to block the merger plan between Inglewood Hospital and the medical center Hackensack Meridian Health because of concerns raised by the US Federal Trade Commission.
If Hackensack acquired its most important competitor, Englewood, Hackensack would control three of the six hospitals in Bergen County, when the FTC challenged the merger in 2020. Insisted. The FTC has filed an injunction to prevent the sale, which was granted by a judge in the US District Court. .. The hospital has appealed.
D., issued by the Third Circuit Court of Appeals in a decision on Tuesday. Judge Michael Fisher agreed that the transaction would not be useful to the cost-conscious public.
“Prices will undoubtedly rise, as evidenced by a previous merger by Hackensack Meridian, one of New Jersey’s largest healthcare providers,” the decision said.
FTC experts have raised the estimated amount by $ 31 million based on peer-reviewed analysis.
“The district court relied on the previous Hackensack merger agreement and concluded that the merger would lead to anti-competitive price increases. The agreement between Hackensack and previously merged facilities is Hackensack. Shows the ability to raise prices. “
Hackensacks have acquired independent hospitals for over a decade, but these hospitals have generally struggled to compete in the increasingly integrated healthcare market and negotiate with insurance companies. Inglewood would have been Hackensack’s 13th acute care facility. The network has promised to invest $ 439.5 million in improvements over eight years.
The hospital argued that the efficiency of consolidating certain operations would be a net savings. However, the district court acknowledged that these benefits “may exist, but are not significant enough to offset the potential anti-competitive effects of the merger,” the Court of Appeals agreed.
Shortly after the ruling, Inglewood issued a statement stating that the agency “remains strong.”
“This is not the decision we wanted, but we have entered the merger plan from a strong standpoint. Inglewood Health remains prosperous and strong,” the hospital statement said.
Warren Geller, President and Chief Executive Officer of Inglewood, said there are plans to continue expanding outpatient care facilities where 70% of patients are treated. A 73,000-square-foot walk-in, primary care and specialty care facility is planned for Jersey City.
Meanwhile, the hospital foundation has raised $ 18 million over the past year, he said.
“We are growing,” he said.
The abandoned merger will not affect current staff, Geller said. “As a result of this court’s ruling, we will never run out of work,” he added.
“We can only see a bright future,” he said.
Hackensack Meridian Health officials said in a statement that they were “disappointed” with the ruling.
“We firmly believe that this merger will be in the best interests of our patients and the community as a whole. At this time, we are considering the next steps that will be of greatest benefit to the communities we serve. “The statement states.
According to the statement, the American Hospital Association, the American Medical College Association, the New Jersey Hospital Association, and the African-American Chamber of Commerce in New Jersey supported the merger.
The Attorney General of New Jersey and the State Health Department have approved the merger.
The FTC’s aggressive actions to suspend the merger became national news, urging 26 state prosecutors to submit court-written friends in support of the FTC. Nine major hospital industry groups, including the New Jersey Hospital Association, have submitted briefs in favor of the deal.
“Ensuring fierce competition in the healthcare system helps keep prices down and provide quality care to patients,” said Josh Shapiro, Pennsylvania Attorney General, disagreeing with the merger. I chanted it.
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George Jordan, a staff writer for NJAdvance Media, contributed to this report.
You can contact Susan K. Livio at [email protected]. Follow her on her Twitter @SusanKLivio..