Hackensack Meridian, the largest healthcare system in New Jersey, and Englewood Healthcare announced their plans to merge in October 2019. While the proposed transaction was approved by the New Jersey attorney general and New Jersey Department of Health, the FTC continued to pursue the challenge and filed for a preliminary injunction in New Jersey district court to block the transaction. The complaint alleges the proposed acquisition of Englewood, located in northern New Jersey, would reduce competition for inpatient general acute care services in Bergen County and lead to higher insurance premiums and out-of-pocket costs.

The district court granted the preliminary injunction in August 2021, finding that the FTC established its prima facie case that the merger will likely lead to anticompetitive effects in the relevant product and geographic markets. The entities filed for appeal with the Third Circuit Court of Appeals shortly after. On March 22, 2022, the Third Circuit Court of Appeals affirmed the preliminary injunction. Hacksensack and Englewood called off their plan for a merger in April 2022.

Court Documents:

11/5/2021: Amicus Brief of The Source and Petris Center in Support of FTC
11/5/2021: Amicus Brief of Coalition of State Attorneys General in Support of FTC
10/29/2021: FTC Reply Brief to 3rd Circuit Court of Appeals
9/15/2021: Appellants Opening Brief to 3rd Circuit Court of Appeals
8/26/2021: Appeal to 3rd Circuit Court of Appeals
8/4/2021: District Court Opinion Granting Preliminary Injunction
12/8/2020: FTC Complaint for Preliminary Injunction and Temporary Restraining Order
12/3/2020: FTC Administrative Complaint

Case Watch Related Articles:

6/27/2022: Hackensack Meridian Health, Inc. and Englewood Healthcare Foundation, In the Matter of
11/5/2021: Hackensack Meridian Health, Inc. and Englewood Healthcare Foundation
12/15/2021: Third Circuit Hears Oral Arguments in High-Stakes Hackensack Meridian Appeal
9/14/2021: Hackensack Meridian/Englewood Merger Heads to Appeals Pending FTC Trial
6/15/2021: Hackensack Meridian-Englewood Awaits Preliminary Injunction Decision
3/12/2021: Pending Merger Challenge Entangled in Discovery Dispute
12/14/2020: Year in Review: 2020 Sees A Flurry of Federal Healthcare Antitrust Challenges