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 central and northeastern Pennsylvania, and Evangelical, an independent community hospital in Lewisburg, Pennsylvania, are close competitors for inpatient general acute-care hospital services for many individuals in a six-county area in central Pennsylvania, with the two hospitals together accounting for approximately 71% of the market in this region.
Geisinger Health is a regional, non-profit health care provider organization that operates hospitals, physician practices, outpatient facilities, and urgent-care centers in Pennsylvania and New Jersey. Geisinger’s flagship facility is Geisinger Medical Center, a 574-bed hospital located in Danville, Pennsylvania. Geisinger Health’s revenues in fiscal year 2019 were approximately $7.1 billion.
Evangelical Community Hospital is a 132-bed non-profit independent community hospital located in Lewisburg, Pennsylvania. It owns physician practices and operates an urgent-care facility and several other outpatient facilities in central Pennsylvania. Its revenues in fiscal year 2019 were approximately $259 million.
The Department of Justice’s mission is to enforce the law and defend the interests of the United States according to the law; to ensure public safety against threats foreign and domestic; to provide federal leadership in preventing and controlling crime; to seek just punishment for those guilty of unlawful behavior; and to ensure fair and impartial administration of justice for all Americans.
This was reported by the U.S. Department of Justice on August 5, 2020.
Contact information: Geisinger, 100 North Academy Avenue, Danville, Pennsylvania 17822; 717-972-4043; Website: www.geisinger.org
Contact information: Evangelical Community Hospital, Hospital Drive, Lewisburg, Pennsylvania 17837; 570-522-2000; Website: www.evanhospital.com
Contact information: U.S. Department of Justice, 950 Pennsylvania Avenue, NW,Washington, District of Columbia 20530-0001; 202-514-2000; Website: https://www.justice.gov