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On December 8, 2020, Judge Gerald Pappert in the US District Court for the Eastern District of Pennsylvania denied a request from the Federal Trade Commission (FTC) and Pennsylvania attorney general (AG) to preliminarily enjoin a proposed merger between Thomas Jefferson University (TJU) and Albert Einstein Healthcare Network (Einstein). The case was widely watched as the FTC sought to show that the combination of these two urban hospital systems would harm consumers.
Background
TJU and Einstein are two hospitals largely based in Philadelphia and neighboring counties that provide general acute care (GAC) and rehabilitative services, among other offerings. The FTC and Pennsylvania AG challenged the merger on the basis that the consolidated entity would harm competition. A central question at the hearing was whether the government could establish the geographic boundaries of the relevant markets it claimed would be harmed.