DOJ Case Summary: United States v. Long Island Jewish Medical Center

United States v. Long Island Jewish Medical Center (CV-97-3412 (ADS) (ETB), 06/11/97)

One-count Complaint, alleging a violation of §1 of the Sherman Act and a violation of § 7 of the Clayton Act, filed in the United States District Court for the Eastern District of New York, on June 11, 1997. The Justice Department alleged that the proposed combination of defendants–Long Island Jewish Medical Center, a large not-for-profit academic hospital, and North Shore Health System, Inc., a not-for-profit corporation that owns and manages North Shore University Hospital, also a large academic hospital–would likely lead to higher hospital prices for health care consumers in the Long Island, New York, area. The Department further alleged that the merging hospitals compete head-to-head to be the “flagship” or “anchor” hospital in the networks of hospitals that managed care companies assemble on Long Island. After a trial on the merits, the District Court granted judgment in favor of the defendants and dismissed the Complaint on October 23, 1997 (1997-2 Trade Cas. (CCH) ¶ 71,960).