Pennsylvania health system merger could hike costs 20%, economist says

The FTC revealed in February that it would take legal action against to obstruct the merger of the two Philadelphia-based health systems, arguing it would decrease competitors in Philadelphia and Montgomery Counties..

More short articles on healthcare finance: 10 current medical facility credit downgradesOIG tags Arizona healthcare facility for erroneous billing8 latest hospital closures.

The 2 health systems argue that Einstein Health Network will stay on shaky financial footing without the merger which the mix is required to save Einsteins flagship hospital..

The approximated $599 million merger of Jefferson Health and Einstein Health Network would push health center costs higher, a financial expert commissioned by the Federal Trade Commission testified Sept. 15, according to Law360..

© Copyright ASC COMMUNICATIONS 2020. Intrigued in LINKING to or REPRINTING this content? View our policies by clicking here.

The FTCs injunction hearing began Sept. 14 and is expected to last the whole week. Loren Smith, PhD, a principal with The Brattle Groups global antitrust and competitors group, testified throughout the 2nd day of the hearing that the merger would likely have anti-competitive results in both Philadelphia County and Montgomery County, according to the report..

Dr. Smith, an economic expert who affirmed as a professional for the FTC, stated the merger of Jefferson Health and Einstein Health Network might improve some acute care hospital costs by 9 percent and inpatient rehab expenses by as much as 20 percent, according to Law360..