On May 9, 2016, a federal district court for the Middle District of Pennsylvania rejected a request from the Federal Trade Commission (FTC) for a preliminary injunction to enjoin the pending merger (Merger) between Penn State Hershey Medical Center (Hershey) and PinnacleHealth System (collectively, the Hospitals). This decision represents an un expected setback for the FTC in its antitrust oversight role after a series of successful health care merger challenges.
The FTC, along with the Pennsylvania attorney general, filed an administrative complaint in opposition to the Merger in December 2015 , alleging in part that the Merger would substantially lessen competition, in violation of Section 7 of the Clayton Act. The FTC subsequently filed a motion for a preliminary injunction to block the Merger, which was the subject of this decision. To prevai l on a motion for a preliminary injunction, the FTC was obligated to show that blocking the Merger would be in the public interest after considering the likelihood of its ultimate success on the merits and weighing the equities involved in the case.
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