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First filed
RSA and CHIP had their lawsuit locked and loaded when Gov. Andrew Cuomo signed off on the rent law in June 2019. They filed just two weeks later with an argument that would become the basis of suits to follow.
The rent law violates the U.S. Constitution’s Fifth and Fourteenth Amendments, their complaint argued. Specifically, a “takings clause” in the Fifth Amendment bars governments from seizing private property without compensating owners the RSA suit argues that rent regulation, which targets one group to pay for the benefit of others, amounts to just that.
By largely restricting owners from refusing new leases, the law also violates the Fourteenth Amendment’s due process clause, the suit alleges, because the government can’t hinder property owners from keeping people off their property. Another violation of due process, the case claims, is that the law is arbitrary and irrational.
In this Issue:
United States
1. FTC abandons challenge to Philadelphia hospital merger.
On March 1, 2021, the FTC, suffering its first loss in a hospital merger challenge since 2016, voted 4-0 to end its effort to stop the proposed $599 million merger of Philadelphia-area health care systems Jefferson Health and Albert Einstein Healthcare Network. The FTC’s decision comes about a month and a half after the Pennsylvania Attorney General’s office dropped out of the joint challenge.
The FTC challenged the merger on the basis that it would hurt competition in the Philadelphia-area health care market, and after a defeat at the district court, told the appellate court that the judge had applied “faulty economic reasoning.” The FTC alleged that a combined network would control over 60% of the market for inpatient general acute care services in and around North Philadelphia and at least 45% of the market for those services in and around Montgomery County. The FTC alleged that t