AHA, joined by the Association of American Medical Colleges, this week filed an amicus brief in response to the Federal Trade Commission’s challenge to a hospital merger in New Jersey in the U.S. Court of Appeals for the 3rd Circuit. In the brief, the associations expressed concerns about the FTC’s approach to defining the geographic market definition and its apparent disregard for its own merger guidelines in the case. 

“[I]t is essential that the FTC use, and the courts apply, market definition tests that track the law, well-settled economic principles, and the business realities of the healthcare sector,” the brief states. “Moreover, notwithstanding the FTC’s surprising statements to the contrary, it is important that FTC investigations and litigation positions not disregard the Department of Justice’s and Federal Trade Commission’s Horizontal Merger Guidelines when defining relevant markets.”
 
The New Jersey Hospital Association also filed an amicus brief in the case that focused on two issues, which the association contends were not properly considered by the FTC and the district court: New Jersey’s robust regulatory framework for evaluating nonprofit hospital transactions that resulted in approvals of the merger; and important public policy benefits of hospital mergers that result in strong hospitals and health systems available to provide high quality services to New Jersey’s patients and communities.
 

Related News Articles

Headline
The Federal Trade Commission sued to block two separate hospital mergers, it announced today. The FTC will sue to block the announced merger between HCA…
Headline
AHA today urged the Federal Trade Commission to scrutinize commercial health plans that steer patients to third-party specialty pharmacies in which they have a…
Headline
The AHA today urged the U.S. Supreme Court to reverse a 9th Circuit decision that impliedly stripped federal district courts of jurisdiction over…
Headline
The Department of Health and Human Services today released a report and public data on 2016-2022 ownership changes for hospitals and nursing homes enrolled in…
Headline
Following their recent request for information on ways to modernize merger guidelines, the Federal Trade Commission and Department of Justice today held a…
Headline
As the Federal Trade Commission and Department of Justice contemplate changes to their guidelines for horizontal and vertical mergers, AHA today urged the…