The Federal Trade Commission (FTC) authorized an administrative complaint and a suit in federal court to block the acquisition of Saint Peter’s Healthcare System by RWJBarnabas Health, or RWJ, one of the largest hospital systems in New Jersey.
The complaint presented by the FTC alleges the acquisition will harm competition for inpatient general acute care services in the Middlesex area, in central New Jersey. These services include a broad range of essential medical and surgical diagnostic and treatment services that require an overnight hospital stay.
Read More: Stacking the Blocks: Vertical Integration and Antitrust in the Healthcare Industry
“Saint Peter’s University Hospital is less than one mile away from RWJ in New Brunswick, and they are the only two hospitals in that city,” said FTC Bureau of Competition Director Holly Vedova. “There is overwhelming evidence that this acquisition would be bad for patients, because the parties would no longer have to compete to provide the lowest prices and the best quality and service.”
The acquisition would give the combined healthcare system a market share of approximately 50 percent for general acute care services in Middlesex County as a whole, easily resulting in a presumption of harm under the antitrust laws, according to the complaint.
Headquartered in West Orange, N.J., RWJ is a non-profit corporation that operates 12 general acute care hospitals, several ambulatory surgical centers, a pediatric rehabilitation hospital, and a freestanding behavioral health center in New Jersey. Saint Peter’s Healthcare is a non-profit corporation headquartered in New Brunswick, N.J., that operates an independent hospital and includes a state-designated children’s hospital.
More on This: Antitrust Chronicle – Healthcare Mergers: A Post-Mortem
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI