Federal Court Blocks Penn State U Hospital Merger

September 28, 2016

A federal appeals court this week overruled another court's ruling that would have allowed a merger between the Penn State Hershey Medical Center and PinnacleHealth System, a private hospital operator. The U.S. Federal Trade Commission and Pennsylvania's attorney general have opposed the merger, citing monopolistic concerns. A district court had denied the FTC and the AG's office's request for a preliminary injunction to block the merger, saying the legal challenge failed to properly define the relative geographic market the merged hospitals would serve. The appeals court, however, reversed that decision, saying an injunction would be in the public interest.

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