Federal Trade Commission and Commonwealth of Pennsylvania v. Thomas Jefferson University and Albert Einstein Healthcare NetworkDate Filed: February 27, 2020
District Court: Eastern District of Pennsylvania – Case No. 2:20-CV-01113-GJP
Appellate Court: 3rd Circuit
Nature of Suit: Antitrust - Consolidation
Defendant Type: Provider
Plaintiff Type: Federal, State
Case Info: https://www.ftc.gov/enforcement/cases-proceedings/181-0128/thomas-jefferson-university-matter, https://www.ftc.gov/enforcement/cases-proceedings/181-0128/thomas-jefferson-university-et-al
The FTC and the Pennsylvania AG filed a lawsuit in the Eastern District of Pennsylvania to block the nearly $600 million merger deal between Jefferson Health and Albert Einstein Healthcare Network, the two leading providers in Philadelphia and Montgomery counties. According to the complaint, the merger would result in the entities controlling 45-60% of the inpatient general acute care services market and 70% of the rehabilitation services market in those regions.
In December 2020, the district court denied the preliminary injunction against the merger. The judge questioned the government’s claim that the merger would drive up prices for insurers. While two of the four major insurers in the region claimed the potential merger would raise their rates, the court noted that Aetna, the second largest insurer in the market, expressed no concerns about the merger driving up its prices. The government immediately filed an emergency motion in the 3rd Circuit Court of Appeals for an injunction pending outcome of the appeal process, arguing it could be too late to “unscramble the egg” once the merger is consummated, but the 3rd Circuit denied the emergency motion in a one-page order, essentially allowing the merger to proceed.
The Pennsylvania AG dropped his challenge against the merger after Jefferson and Einstein agreed to invest in North Philadelphia area facilities, followed by FTC’s announcement to withdraw the challenge a month later.