FTC Complaint Leads RWJBarnabas and Saint Peter’s Healthcare to Abandon Hospital Merger

• October 07, 2022

• H. Kristie Xian , Jones Day

On June 2, 2022, the Federal Trade Commission (FTC) issued an administrative complaint to block RWJBarnabas Health’s (RWJ)’s proposed merger with Saint Peter’s Healthcare. The FTC argued that the proposed merger violated Section 5 of the FTC Act and Section 7 of the Clayton Act. In its press release, the FTC alleged that the transaction was presumptively unlawful and would have resulted in higher prices and lower quality of care for New Jersey residents. The Commission voted 5-0 to issue the administrative complaint and authorized a temporary restraining order and injunction in the U.S. District Court for the District of New Jersey. Two weeks later, the parties abandoned the proposed merger.

ARTICLE TAGS

• Antitrust Practice Group
• Antitrust