Hackensack Meridian Health, Englewood Health call off merger after appeals court block
Hackensack maintained the merger was in the best interest of patients, but is deferring to the appellate court's decision.
Photo courtesy of Hackensack Meridian Health
Hackensack Meridian Health and Englewood Health, both based in New Jersey, have officially called off merger plans after a federal appeals court decision in March blocked the consolidation.
The Third Circuit Court of Appeals affirmed the district court's August 2021 preliminary injunction last month. The administrative trial had been scheduled to begin April 22.
"We firmly believe this merger was in the best interest of our patients and the community at large," Hackensack offered in a statement to Healthcare Finance News. "Given the appellate court's decision, the board and leadership of Hackensack Meridian Health have decided not to pursue the merger."
WHAT'S THE IMPACT
The Federal Trade Commission first raised the alarm on the merger over concerns that the resulting high market concentration in Bergen County, New Jersey would result in anticompetitive practices.
In filing its original complaint, the FTC claimed that if Hackensack had successfully acquired the acute care teaching hospital in Englewood, the combined health system would have controlled three of the six inpatient general acute care hospitals in Bergen County.
It would have left insurers with few alternatives for inpatient general acute-care services, which encompass a broad range of inpatient medical and surgical diagnostic and treatment services that require an overnight hospital stay, the FTC said.
"Had it been allowed to proceed, patients would have been left with fewer alternatives for inpatient general acute care services, which likely would have driven up prices and diminished the quality of care available in the area," FTC Bureau of Competition Deputy Director John M. Newman said by statement after the appeals court decision.
THE LARGER TREND
Hackensack Meridian Health and Englewood Health had been seeking to merge since 2019.
In December 2020, the FTC filed an administrative complaint against the merger. Hackensack filed an appeal in August 2021 in the U.S. District Court for the District of New Jersey.
In November 2021, a multistate coalition of attorneys general, led by California Attorney General Rob Bonta and Pennsylvania Attorney General Josh Shapiro, joined to block the merger in filing an amicus brief.
Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com
