The US DoJ enters into a settlement agreement with two healthcare providers following a competition concern raised against the proposed merger, which limits the scope of their partial acquisition and collaboration (Geisinger / Evangelical)

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On March 3, 2021, the Antitrust Division of the Department of Justice (DOJ) announced a settlement with Geisinger Health (Geisinger) and Evangelical Community Hospital (Evangelical) that resolves DOJ’s challenge to Geisinger’s partial acquisition of Evangelical. DOJ alleged that several features of the partial-acquisition agreement, combined with a history of close competition and cooperation between the parties, would violate Section 7 of the Clayton Act and Section 1 of the Sherman Act. The Investigation and Complaint On February 1, 2019, Geisinger and Evangelical executed a “Collaboration Agreement.” As part of this proposed agreement, Geisinger agreed to acquire a 30% interest in Evangelical in exchange for $100 million towards intellectual property licensing and investment projects.

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Authors

  • Axinn Veltrop & Harkrider
  • US Federal Trade Commission (FTC) (Washington)

Quotation

Jeny M. Maier, Adam Cella, The US DoJ enters into a settlement agreement with two healthcare providers following a competition concern raised against the proposed merger, which limits the scope of their partial acquisition and collaboration (Geisinger / Evangelical), 12 March 2021, e-Competitions March 2021, Art. N° 108413

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