A group of economists, the Association of Independent Doctors and 12 states filed three "friends of the court" briefings to oppose a merger between Penn State Health Milton S. Hershey Medical Center and PinnacleHealth System in Harrisburg, Pa., the Central Penn Business Journal reported.
Hershey and PinnacleHealth proposed a merger last June, and in December the Federal Trade Commission and Pennsylvania Attorney General Kathleen Kane objected to the proposed merger. However, in May Pennsylvania federal Judge John E. Jones III determined FTC and the attorney general could not block the merger.
In response, the FTC and state regulators garnered allies to further scrutinize the merger, according to the Central Penn Business Journal.
In one filing, economists argued the district court's decision to not allow officials to block the merger is outdated. Specifically, the economists said the judge's assessment of the proposed merger's geographical market was insufficient, only considering patients entering the market and not those leaving it.
In another briefing, physicians group AID said as the number of independent physicians decline and join health systems, health systems receive less competition. AID also said the merger would decrease healthcare quality and decrease patient choice, the Central Penn Business Journal reported.
The final briefing, filed by 12 states — Idaho, Washington, California, Connecticut, Iowa, Illinois, Massachusetts, Maine, Minnesota, Mississippi, Montana and Oregon — claimed the judge's decision did not address how the merger would affect insurer competition. Increases in insurance costs could affect other insurers outside of Pennsylvania.
It is unclear if the briefings will carry clout come the week of July 25, when the U.S. 3rd Circuit Court in Philadelphia will address the case.