The deal was opposed by the FTC, which was sued earlier this month to block a merger of New Jersey’s health care system.
New Jersey’s health systems, RWJBarnabas Health and Saint Peter’s Healthcare System, have called off plans to merge, the organizations said Tuesday.
A separate statement said the systems had mutually agreed to end the deal after the Federal Trade Commission (FTC) moved to block the merger in early June due to alleged anti-competitive conduct.
Barry H. Ostrowsky, CEO of RWJBarnabas and Leslie D. Hirsch of FACHE, President and CEO of Saint Peter’s, expressed their disappointment at canceling the deal.
“We are disappointed with the conclusion of the proposed transaction, which we believe will transform the quality of people in this state, increase access and reduce overall healthcare costs through the creation of a premier academic medical center.” I am,” said Ostrovsky. “Despite this lost opportunity, RWJBarnabas Health remains steadfast in its commitment to serving the people of New Jersey, especially those living in some of the most vulnerable and chronically underserved communities. We will continue to do so.”
“We are very disappointed with this result, but we appreciate the strong partnership with the leadership of RWJBarnabas,” said Hirsch. “Together with RWJBarnabas, we have the potential to create the best academic medical centers of national excellence that improve quality and increase access, especially to the most vulnerable people in the communities we serve.” Really excited about sex, we are currently evaluating the best way forward as we explore potential options to ensure St. Peter’s longstanding Catholic medical mission .”
According to a complaint filed by the FTC in early June, the deal harms competition for inpatient general acute care services in Middlesex County, New Jersey, and robs the comprehensive care system of about 50% market share of general patients. will give Middlesex County Acute Care Services. According to the eh FTC, this would lead to antitrust violations by eliminating competition between the two health care systems, increasing concentration and leaving insurers with increasingly unattractive options.
“We are pleased that rival hospital systems, RWJ and St. Peters, have called off an anti-competitive merger harming patients in Middlesex County, New Jersey. would have resulted in higher costs and lower quality health care for residents of the United States,” FTC Competition Director Holly Vedova said in a statement.
The FTC appealed not only to block the merger of RWJBarnabas and Saint Peter’s, but also to block the merger of HCA Healthcare and Steward Health Care System in Utah and Lifespan and Care New England Health System in Rhode Island. It’s only a matter of time before we know if the mega merger of Advocate Aurora and Atrium Health will make a decision for the FTC, or if the FTC will continue its merger-busting streak.
“This is the third time the Commission has filed a petition to block an anti-competitive hospital merger in 2022,” Vedova said. “This enforcement action is a reminder that the FTC remains vigilant in antitrust enforcement and will continue to protect healthcare consumers in the face of illegal hospital consolidation.”
Melanie Blackman is the strategy editor for HCPro brand HealthLeaders.