Case Details

Year Initiated/Committed


Year Resolved


Settlement Amount

$31.5 million


U.S. District Court for the Middle District of Pennsylvania

Docket Number


Lead State


Participating States



Providence Health System/ Williamsport Hospital

Case Description

Pennsylvania sought to enjoin the merger between Providence Health System Inc. and North Central Pennsylvania Health System, Pennsylvania Attorney General’s office”s proposed consent decree was approved by a federal court in Harrisburg. The consent decree permitted the creation of an alliance among three of four hospitals in Lycoming County. Prior to the filing of the complaint and consent decree, the U.S. Justice Department agreed to terminate its own investigation and defer jurisdiction to the Attorney General. In return for approving the creation of the Susquehanna Health System Alliance, the decree required that $31.5 million of the anticipated net cost savings during the first five years of the Alliance be passed on to consumers in the form of low-cost or free health care programs for the community or by reducing prices or limiting actual price increases for existing services. Further the consent decree limited the extent to which the hospital could increase prices, and it prohibited certain types of exclusive dealings arrangements