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The US District Court for the Eastern District of New York accepts a merger of the two largest hospitals (Long Island Jewish Medical Center / Norton Shore Health)

The FTC brought antitrust action under Section 7 of the Clayton Act to prevent merger of two not-for-profit hospitals in Long Island, New York. The New York healthcare industry has experience significant changes prior to the proposed merger of the two hospitals. Further complicating the fast-evolving health care economic picture is the deregulation of hospital rates by the State of New York, which was effective January 1, 1997. The impact of this regulation was to greatly intensify the competition between hospitals, physician groups, managed care plans and consumers to negotiate hospital rates and to obtain patients. The two hospitals that proposed the merger, North Shore Health Systems and Long Island Jewish Medical Center, are large not-for-profit institutions located fairly close

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Tiffany Chongyang Ge, The US District Court for the Eastern District of New York accepts a merger of the two largest hospitals (Long Island Jewish Medical Center / Norton Shore Health), 23 October 1997, e-Competitions October 1997, Art. N° 71646

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