AGs Oppose Hackensack, Englewood Merger

26 attorneys general across the United States, the District of Columbia, and Guam urge the court to block the merger.

California Attorney General Rob Bonta and Pennsylvania Attorney General Josh Shapiro have spearheaded a bipartisan coalition of 26 attorneys general to oppose the merger of New Jersey's Hackensack Memorial Hospital and Englewood Healthcare Foundation.

The AGs filed an amicus brief Tuesday morning in the Federal Trade Commission v. Hackensack Memorial Hospital and Englewood Healthcare Foundation, that urged the U.S. Third Circuit Court of Appeals to uphold the temporary halt of the merger because of its potential anticompetitive impact.

In the brief, the AGs state: "States plays a significant role in reviewing healthcare transactions and understanding the impact of consolidation in our states. This role uniquely situates the States to offer views on the impact of anticompetitive healthcare provider mergers and conduct within our respective states. It is this knowledge and experience in healthcare markets, which supports why the States respectfully ask this Court to affirm the district court’s opinion and uphold the preliminary injunction."

Bonta said in a statement: "In California, we’ve seen firsthand the effects of a large non-profit healthcare system’s anticompetitive practices. In our settlement with Sutter Health, we were able to ensure increased transparency and end practices that decrease the accessibility and affordability of healthcare. However, we look to federal agencies and federal antitrust law to prevent potential anticompetitive mergers of for-profit hospitals and of other providers. With COVID-19 continuing to impact communities across the country, affordable and accessible healthcare is more important than ever. We have to get this right."

Shapiro echoed Bonta's sentiments in a statement: "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. Ensuring that there is strong competition in the healthcare system helps keep prices down and still provides patients with quality care."

The brief was also signed by the attorneys general of Colorado, Connecticut, Delaware, Guam, Idaho, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Nebraska, New Hampshire, New Mexico, New York, Nevada, North Carolina, North Dakota, Oregon, Rhode Island, Virginia, Washington, Wisconsin, and the District of Columbia.

Hackensack Meridian Health and Englewood Health signed a definitive merger agreement in October 2019. In December 2020,  the Federal Trade Commission announced that it intended to block the proposed merger, saying it would create a monopoly that would drive up prices in Bergen County.

The U.S. District Court for the District of New Jersey further granted the request in August 2021, stating that "the merger would result in anticompetitive effects like higher prices and lower-quality care, without any extraordinary efficiencies to offset those harms."

The merger has garnered support from healthcare organizations, including the American Hospital Association, the Association of American Medical Colleges, the New Jersey Hospital Association, the African American Chamber of Commerce of New Jersey, and a group of five economists who have all recently submitted "friend of court briefs."