FTC sues to block merger of New Jersey health system


According to the FTC, the acquisition will give the combined care system approximately 50% market share in general acute care services in Middlesex County.

The Federal Trade Commission (FTC) continues its massive crackdown on anti-competitive dealings in the healthcare sector, launching a reserve to block the merger of non-profit health systems RWJBarnabas Health and Saint Peter’s Healthcare System. We are taking steps.

According to the complaint, the deal would “harm competition for general acute care services for hospitalized patients” in Middlesex County, New Jersey. By disappearing, becoming more concentrated, and moving away from insurers, the integrated health system has gained about 50% market share of Middlesex County’s general acute care services, leading to antitrust violations. Become. Use less and less attractive alternatives.

“St. Peter’s University Hospital is less than a mile from RWJ, New Brunswick. There are only two hospitals in the city,” FTC Competition Director Holly Vedova said in a statement. “There is overwhelming evidence that this acquisition is bad for patients because it eliminates the need for parties to compete to provide the lowest prices and the best quality and service.”

Barry H. Ostrowsky, CEO of RWBarnabas Health, and Leslie D. Hirsch, president and CEO of Saint Peter’s, released a joint statement Friday morning announcing that the FTC will “create New Jersey’s first and best academic healthcare.” I shared my disappointment with the decision to thwart the vision of the system. center. “

“Today, the Federal Trade Commission (“FTC”) is set to file an administrative lawsuit and approve the action in federal court on a proposed transaction that will allow us to build our first premier academic medical center. was notified to block “New Jersey will increase our services so we can provide better care to New Jersey residents,” the statement said.

“The proposed transaction has received full approval from the New Jersey Attorney General and is supported by grassroots community groups, employer groups, unions, managed care organizations and elected officials at all levels in the state. We are very disappointed with these FTC actions against New Jersey.But we are most disappointed with the people of New Jersey, especially those who live in the most vulnerable and chronically underserved communities.

“We will be reviewing the FTC’s allegations in which New Jersey did not participate over the next few days to determine how best to move forward.”

Last month, the health system shared that a merger plan was approved by the state of New Jersey. This is “a tremendous milestone in our multi-year journey to realize our shared vision of bringing innovative care to New Jersey,” said Ostroski.

According to a press release, on April 26, in approving a transaction under New Jersey’s Community Health Care Assets Protection Act (“CHAPA”), Superior Court Judge Lisa Vignolo said, “Applicant meets the necessary requirements. …[and the transaction between RWJBH and Saint Peter’s] Create a premier University of New Jersey academic and medical center that will serve the public good and the public good and benefit the citizens of this state, create hopefuls, and create hopes. ”

The merger has received continued support from state officials and payers, including: Rep. Frank Pallone Jr. (NJ-06), New Jersey Senate Speaker Nicholas Scutari, New Jersey Speaker of the Legislature Craig Coughlin, Middlesex County Commissioner Ronald Rios, New Brunswick Mayor James Cahill, New Jersey Legislative Latino Caucus, New Jersey Legislative Black Caucus, New Jersey African American Chamber of Commerce, New Jersey Business & Industry Association, Horizon Blue Cross Blue Shield, Etna Better Health.

Melanie Blackman is the strategy editor for HCPro brand HealthLeaders.



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