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FTC drops challenge to Philadelphia health system merger

The Federal Trade Commission is no longer challenging the merger between Jefferson Health and Einstein Healthcare Network, clearing the way for the two Philadelphia-based health systems to combine. 

The FTC dropped its challenge to the transaction Feb. 26 after previously arguing that the combination of the two systems would reduce competition in Philadelphia and Montgomery counties and lead to price increases. 

The merger, which will expand Jefferson from 14 to 18 hospitals, is expected to close within the next six months, said Stephen Klasko, MD, president of Thomas Jefferson University and CEO of Jefferson Health. 

"Two nonprofit, anchor institutions coming together to preserve access to care and do the right thing by the residents of Philadelphia is a creative solution to ensure Einstein doesn't face the same fate as Hahnemann University Hospital," said Dr. Klasko. "It's a milestone victory for the city of Philadelphia and for those patients and families we proudly serve."

Hahnemann University Hospital in Philadelphia closed in 2019 after filing for bankruptcy.

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