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The U.S. Department of Justice (“DOJ”) and the Federal Trade Commission (“FTC”), in the span of about 48 hours in the first days of March, wrapped up two challenges to hospital deals – one dropped, the other settled (pending court approval). Both outcomes should be viewed as important indicators of both the issues the enforcement agencies are likely to focus on in health care industry deals and why market definition is particularly critical in health care market transactions.
The Philadelphia Case
On Monday, March 1, the FTC announced that it was walking away from its year-old challenge to the pending merger of the Philadelphia-area Jefferson Health (“Jefferson”) and Albert Einstein Healthcare Network (“Einstein”). The case was filed in February 2020, and the FTC was joined by the Pennsylvania Office of Attorney General (“PA-AG”). The FTC and PA-AG, unsuccessfully, sought a preliminary injunction
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