The federal government is suing to block the proposed merger between RWJBarnabas Health and Saint Peter’s Healthcare Technique, declaring the acquisition would be “bad for patients.”
The Federal Trade Fee said in a statement that it has filed go well with in federal court docket to halt RWJBarnabas — the state’s largest overall health system — from buying the nonprofit Saint Peter’s, a merger that has been in the performs given that 2019.
An administrative demo is scheduled to commence Nov. 29.
The FTC alleges RWJBarnabas’ acquisition of the New Brunswick health community would “harm competition for inpatient common acute treatment products and services.”
“Saint Peter’s College Hospital is a lot less than just one mile absent from RWJ in New Brunswick, and they are the only two hospitals in that metropolis,” FTC Bureau of Levels of competition Director Holly Vedova said in the statement. “There is overpowering proof that this acquisition would be undesirable for patients, because the get-togethers would no longer have to contend to offer the lowest prices and the most effective quality and assistance.”
The FTC alleges that a combined health process would consolidate around half the industry share for standard acute care companies in Middlesex County, “easily ensuing in a presumption of harm under the antitrust regulations,” the statement mentioned.
RWJBarnabas Health, headquartered in West Orange, runs 12 acute treatment hospitals, a few children’s hospitals and a number of satellite offices. Saint Peter’s involves a 478-mattress educating medical center and children’s hospital.
The two wellness networks are immediate rivals. Removing that levels of competition, the FTC maintains, would be terrible for people.
“This opposition incentivizes RWJ and Saint Peter’s to enhance excellent, know-how, features, equipment, entry to care, and assistance choices,” the FTC explained.
RWJBarnabas was notified Friday about the FTC’s plans, ensuing in a pointed assertion from the wellness network.
RWJBarnabas is trying to get to make “the to start with premier educational professional medical heart in New Jersey to increase expert services and deliver greater accessibility to these care for New Jersey citizens,” a spokeswoman mentioned in an emailed statement, which was jointly signed by Barry H. Ostrowsky, president and CEO of RWJBarnabas Health, and Leslie D. Hirsch, president and CEO of Saint Peter’s Health care Procedure.
“We are exceptionally let down by these FTC actions against our proposed transaction, which has received complete approval from New Jersey’s Legal professional Normal and is supported by grassroots neighborhood teams, employer teams, unions, managed treatment organizations and elected officers at all concentrations within the Condition of New Jersey,” the assertion explained.
“We are most upset, nevertheless, for the folks of New Jersey — primarily those people who reside in our most susceptible, chronically underserved communities — who will be denied obtain to the intricate treatment only presented by leading tutorial health care facilities. We shall be reviewing the FTC’s complaint, which the Point out of New Jersey did not be a part of, more than the coming times and establish how to ideal transfer forward.”
The FTC believes the acquisition, on the other hand, would do much more damage to individuals than good. The company alleges that the acquisition would “leave insurers with fewer, a lot less appealing possibilities.”
“The only other typical acute treatment hospitals in Middlesex County are situated outside the house New Brunswick. A merged wellbeing system would probable be ready to need greater reimbursement rates and/or far more onerous contractual phrases than it does right now, which will harm individuals,” the FTC stated in the statement.
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