Court Blocks Merger Between Hackensack Meridan, Englewood Health

BERGEN COUNTY, NJ — A federal appeals court blocked the proposed union between two Bergen County hospitals, after the Federal Trade Commission claimed the merger would limit competition.

Hackensack Meridian Health and Englewood Health announced their merger in October of 2019.

Judges of the U.S. Court of Appeals for the 3rd Circuit announced their ruling Tuesday, agreeing with a lower court judge. The judges said competition between the two hospitals keeps prices fair for insured patients, and encourages both systems to be innovative.

"If the merger occurs, consumers would likely be disadvantaged because Englewood would no longer have an incentive to outperform (Hackensack University Medical Center) and HUMC would have no reason to strive for improvement in those areas," the judges wrote.

As NorthJersey.com reports, the FTC challenged that merger in December 2020.

Hackensack Meridian Health issued the following statement:

"We were very disappointed to learn that the U.S. Court of Appeals for the Third Circuit denied our appeal of the U.S. District Court’s preliminary injunction to block the merger between Hackensack Meridian Health and Englewood Health," HMH said. "The proposed merger had been approved by the New Jersey Department of Health and the New Jersey Office of Attorney General, and received support from organizations including the American Hospital Association, Association of American Medical Colleges, the New Jersey Hospital Association, and the African American Chamber of Commerce of New Jersey.

"We firmly believe this merger is in the best interest of our patients and the community at large. At this time, we are weighing the next steps that are in the best interest of the communities we serve."