While UPMC aims to affiliate with Washington (Pa.) Health System as soon as possible, the FTC’s scrutiny could slow the approval process. The regulatory body has connected with UPMC’s competitors in the region, including Allentown, Pa.-based Allegheny Health Network and DuBois, Pa.-based Penn Highlands Healthcare, for comment on the deal.
The deal would add two hospitals, 18 medical practices and 24 locations to UPMC’s network.
The FTC has been zeroing in on healthcare deals that would give one provider a monopoly over the market and challenging mergers in court. Last year, at least three health systems dropped their merger plans after an FTC challenge.
UPMC already has 43% of the medical-surgical inpatient services in 29 Pennsylvania counties, including Washington County, where Washington Health System is located. The FTC has been challenging mergers in which the deal would give one healthcare organization 30% of the market.
The FTC and Justice Department have been active in recent years across all industries, filing 50 merger enforcement actions in 2022, which was the highest level of enforcement in the last 20 years.
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