Tessa Quinn
Englewood Health, a 352-bed hospital founded in 1890, was one of the last independent hospitals in its region before it announced its merger with Hackensack Meridian Health in October 2019. The merger was expected to create a dominating force in North Jersey healthcare, with Hackensack Meridian Health investing $400 million in capital improvements at Englewood Hospital. However, the merger faced legal challenges, and in March 2022, a federal appeals court blocked the proposed merger between the two healthcare systems. As of June 2022, Englewood Health and Hackensack Meridian Health have dropped their plans for a merger.
| Characteristics | Values |
|---|---|
| Englewood Hospital Merger Status | Cancelled |
| Merger Announced | October 15, 2019 |
| Merger Agreement | Signed |
| Merger Agreement Date | Tuesday, 2019 |
| Merger Agreement Type | Definitive |
| Merger Status | Blocked by Federal Court Order |
| Merger Ruling Body | Federal Appeals Court |
| Merger Ruling Date | March 22, 2022 |
| Merger Agreement Amount | $400 million |
| Englewood Hospital Beds | 352 |
| Englewood Hospital Revenue | $665.9 million |
| Englewood Hospital Year of Founding | 1890 |
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What You'll Learn
Englewood Health and Hackensack Meridian Health Merger
Englewood Health and Hackensack Meridian Health announced their plans to merge in October 2019. The merger was expected to bring the 531-bed Englewood Hospital, located just 8 miles from Hackensack, into the orbit of the flagship Hackensack University Medical Center. Englewood Health, founded in 1890, is one of the last independent hospitals in New Jersey.
The merger was expected to create a dominating force in North Jersey healthcare, with Hackensack Meridian Health investing $400-$440 million in new facilities and improvements at Englewood. This would have expanded ambulatory care centers and cardiac catheterization labs, improved operating facilities, and enhanced patient care services.
However, the merger faced opposition from the Federal Trade Commission (FTC), which argued that the merger would be anticompetitive and disadvantageous to consumers. The FTC contended that the merger would enable Hackensack Meridian to demand higher prices from insurers, potentially leading to higher premiums for insurance plan members. Additionally, the FTC claimed that the merger would reduce competition, lower incentives for improving quality of care, and lead to higher prices for healthcare consumers.
Following legal battles and court rulings blocking the merger, Englewood Health and Hackensack Meridian Health officially terminated their merger plans in April 2022. The decision marked a significant victory for the FTC and could have reverberations across the U.S. healthcare system, potentially slowing the trend toward hospital consolidation.
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Federal Court Order blocking the merger
The Federal Trade Commission (FTC) challenged the proposed merger between Hackensack Meridian Health and Englewood Health in December 2020, arguing that the deal would eliminate competition between the two healthcare providers and lead to higher healthcare costs. The FTC filed an administrative complaint and authorised a suit in federal court to block the merger.
The FTC's argument was that the merged entity would control three of the six inpatient general acute-care hospitals in Bergen County, New Jersey. This would reduce competition and leave insurers with fewer alternatives for inpatient general acute care services, which encompass a broad range of inpatient medical and surgical diagnostic and treatment services requiring an overnight hospital stay. The FTC further argued that the merger would enable Hackensack Meridian to demand higher prices from insurers, potentially leading to higher premiums for insurance plan members.
In August 2021, the FTC obtained a preliminary injunction from U.S. District Judge Michael Vazquez, halting the acquisition while the administrative trial was underway. Hackensack Meridian Health and Englewood filed an appeal in the Third Circuit, challenging the opinion made in the U.S. District Court. However, on March 22, 2022, the U.S. Court of Appeals for the Third Circuit affirmed the order of the District Court and blocked the proposed merger.
The decision by the four-judge panel of the U.S. Court of Appeals for the Third Circuit concurred with the FTC's assessment, stating that "the merger is likely to substantially lessen competition." The court's decision reflected the federal government's power to halt the trend toward increasing hospital consolidation and decreasing competition in the healthcare industry.
Despite the merger being blocked, Hackensack Meridian initially stated that it had not given up its fight to acquire Englewood Health. However, as of June 2022, Hackensack Meridian Health and Englewood Health have officially dropped their plans for a merger.
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Hackensack Meridian Health's growth spurt
Hackensack Meridian Health is the largest, most comprehensive, and fully integrated healthcare network in New Jersey. The network comprises 17 hospitals spread across the state. Hackensack Meridian Health's mission is to transform healthcare in New Jersey and beyond.
In 2019, Englewood Health, one of the last independent hospitals in the region, announced its plans to merge with Hackensack Meridian Health. The merger was expected to bring the 541-bed Englewood hospital, located just 8 miles from Hackensack, into the orbit of the flagship Hackensack University Medical Center. The merger was also expected to expand Hackensack Meridian's network, which works to bring care closer to patients.
The deal included plans for $400 million in new facilities for Englewood, with a focus on improving operating facilities, expanding ambulatory care centers, and cardiac catheterization labs. The merger was expected to give patients access to clinical trials, transplants, and Hackensack's children's hospital, with its many pediatric specialties.
However, the Federal Trade Commission blocked the proposed merger in 2022, arguing that it would be anticompetitive. Despite this setback, Hackensack Meridian Health continues to grow and evolve, with a focus on providing increased access to high-quality, cost-effective care and more specialties for its patients.
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Englewood Health's history
Englewood Health is a hospital located in Englewood, Bergen County, New Jersey, United States. It was founded in 1890 with 12 beds and has since expanded to become a fully accredited 352-bed hospital. The hospital first announced its merger with Hackensack Meridian Health, a comprehensive health network of 17 hospitals statewide, in October 2019. This merger was expected to bring together Englewood's network of 100 ambulatory care sites in six counties with Hackensack Meridian's network, improving patient access to clinical trials, transplants, and Hackensack's children's hospital.
The history of Englewood Health spans over a century, with the hospital continuously evolving to meet the needs of its patients. Today, it is one of New Jersey's leading healthcare systems, delivering nationally recognized inpatient and outpatient care through its hospital and network of physician practices, urgent care centers, and imaging centers. The hospital has a particular focus on orthopedic care, behavioral health, and its internationally recognized bloodless medicine program.
In 2015, Englewood Health entered into an affiliation with Hackensack Meridian Health, partnering to expand patient care services and develop new collaborative programs. This affiliation laid the groundwork for the proposed merger in 2019, which was driven by the shared mission and commitment to quality care between the two organizations. As part of the merger agreement, Hackensack Meridian Health committed to investing $400 million in capital improvements at Englewood Hospital, including new operating rooms, expanded ambulatory care centers, and larger cardiac catheterization labs.
However, the merger between Englewood Health and Hackensack Meridian Health faced legal challenges. In December 2020, the Federal Trade Commission announced its intention to sue to block the merger due to concerns over monopolistic practices. The merger was temporarily blocked by a federal judge in March 2021, and the legal battle continued over the following year. Ultimately, in June 2022, it was announced that the merger plans had been officially dropped, marking the end of the proposed union between Englewood Health and Hackensack Meridian Health.
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The future of healthcare in New Jersey
The healthcare landscape in New Jersey is also being shaped by emerging technologies, such as telehealth and remote patient monitoring, which enhance access to care and provide flexible options for patients and clinical teams. Additionally, the team-based care model is gaining traction, leveraging the diverse talents of healthcare professionals to provide coordinated and efficient care.
Another critical factor influencing the future of healthcare in New Jersey is the nursing shortage. The state is projected to experience a shortage of 11,400 nurses by 2030, exacerbated by an aging healthcare workforce. This shortage is already impacting hospitals, with vacancy rates for RNs and Nurse Extenders more than doubling and tripling, respectively, in a three-year period. The pandemic further exacerbated this issue, with an estimated 100,000 US nurses leaving the profession during that time.
Affordability is another significant concern for New Jersey residents, with surveys indicating that nearly 3 in 5 adults experienced healthcare affordability burdens in the past year, and over 4 in 5 worry about affording healthcare in the future. Lower-income individuals and those with disabilities are particularly vulnerable, often having to choose between incurring debt or forgoing care. These affordability concerns have sparked discussions about potential government-led solutions.
In conclusion, the future of healthcare in New Jersey is shaped by a complex interplay of factors, including blocked mergers, emerging technologies, team-based care models, nursing shortages, and affordability concerns. Addressing these challenges will be crucial in ensuring access to quality healthcare for the state's residents.
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Frequently asked questions
Englewood Health announced plans to merge with Hackensack Meridian Health in 2019, but the merger was blocked by a federal appeals court in 2022.
The merger was blocked by a federal appeals court in 2022, but Hackensack Meridian Health has not given up its fight to acquire Englewood Health.
The merger was intended to improve local care delivery and benefit the communities served by both health systems.
As part of the deal, Hackensack Meridian Health agreed to invest $400 million in capital improvements at Englewood Hospital, including new facilities and the expansion of ambulatory care centers and cardiac catheterization labs.
