Justice Department Sues To Block Geisinger Health’s Transaction With Evangelical Community Hospital

The U.S. Department of Justice has sued to block Geisinger Health’s partial acquisition of its close rival, Evangelical Community Hospital. The complaint alleges that the agreement fundamentally alters the relationship between the parties, raising the likelihood of coordination and reducing Defendants’ incentives to compete aggressively against each other.

As a result, the transaction is likely to lead to higher prices, lower quality, and reduced access to high-quality inpatient hospital services for individuals in central Pennsylvania. The lawsuit was filed in the U.S. District Court for the Middle District of Pennsylvania. Geisinger, a large hospital system in . . .