An Important Tip For Academic, Nonprofit Hospital Mergers

Law360, New York ( June 20, 2016, 10:39 AM EDT) -- Much of the initial commentary on the Middle District of Pennsylvania's decision in Federal Trade Commission v. Penn State Hershey Medical Center[1] has focused on the court's analysis of the hospitals' geographic marketplace, and questions of geographic mobility in patients' health care decisions. When the Third Circuit Court of Appeals stayed that decision and enjoined the merger pending appeal, the commentary lost some of its steam, as the final word on those questions will come, if at all, in the next round of decision. But regardless of how the Third Circuit deals with the marketplace questions, there is an important issue lurking in the district court's analysis — which contains an important tip for academic and nonprofit hospitals looking to improve their own prospects for potential mergers....

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