October 2021

Jefferson Health Finalizes Merger with Einstein Healthcare Network

United States - New Jersey | United States - Pennsylvania

Thomas Jefferson University retained Faegre Drinker to serve as lead antitrust and trial counsel in connection with an FTC antitrust action relating to its $600 million acquisition of Albert Einstein Healthcare Network. The Faegre Drinker team scored a notable victory on behalf of the client when U.S. District Judge Gerald J. Pappert denied a motion by the FTC and Pennsylvania Attorney General for a preliminary injunction, rejecting a bid to block Jefferson’s merger with Albert Einstein Healthcare Network. 

This was the first FTC action to be defeated in the healthcare hospital/provider space in nearly two decades and was named in Law360’s “Top Merger Challenges to Watch in 2021.” 

The case focused on the contours of the FTC and Pennsylvania’s proposed geographic market and whether Jefferson would gain ability to charge higher prices. TJU argued that the geographic areas were artificial and didn’t comport with commercial realities in Philadelphia, contending this merger wasn’t about greater leverage in commercial insurance but would preserve continued access to critical care for the underserved and low-income communities the hospitals serve through their non-profit missions. 

In December 2020, the court rejected the FTC and Pennsylvania’s claims, agreeing with the hospitals’ arguments that the geographic markets were overly narrow and overstated competition between Jefferson and Einstein. 

In March 2021, the FTC elected to drop its appeal of the decision, solidifying a bet-the-company victory for Jefferson and its $600-million merger.

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