AG Shapiro leads bipartisan coalition in favor of preventing hospital mergers

Regional News

HARRISBURG, Pa. (WTAJ) — Attorney General Josh Shapiro led a bipartisan coalition of 26 attorney generals to urge the U.S. Third Court of Appeals to uphold a lower court’s decision that stopped a merger of hospitals in New Jersey.

The temporary hold on the merger of hospitals in New Jersey would have reduced competition between the hospitals and resulted in anticompetitive effects on the community.

“We know from our experiences here in Pennsylvania that it is critical for people to have good-quality, affordable healthcare choices in their own communities,” Attorney General Shapiro.

The coalitions’ brief points out the importance in preserving local access to healthcare services for consumers. The brief also notes that the lower court correctly and properly analyzed the merger under the antitrust laws and applied the right economic models. It also emphasizes that the lower court’s decision is consistent with the Third Circuit’s decision in Federal Trade Commission (FTC) v. Penn State Hershey Medical Center.

The FTC v. Penn State Hershey Medical Center determined the merger of Penn State Hershey Medical Center and Pinnacle Health was unlawful under the antitrust laws. The Third Circuit remanded that matter back to the district court to grant a preliminary injunction requested by the FTC and the Pennsylvania Office of Attorney General.

“Ensuring that there is strong competition in the healthcare system helps keep prices down and still provides patients with quality care,” Shapiro continued.

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