Hospital mergers and antitrust enforcement

Article Abstract:

Antitrust enforcement decisions regarding hospital mergers do not rely on the Herfindahl-Hirschman index (HHI) in a given metropolitan area but also consider other factors likely to result in reduced competition. HHI analysis focuses on market share in a specific industry and cannot predict how competitive a market might be after a merger. The factors used in scrutinizing proposed health care industry mergers include defining the market and participants in the market, determining ease of entry into the market post-merger and assessing potential pro-competitive or socially beneficial effects.

Mergers, acquisitions and divestments, Hospitals

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The need for an antitrust policy for a health care industry in transition

Article Abstract:

The trend toward increased concentration in health care requires that antitrust enforcement agencies take action, but additional tools and guidance are needed to inform these agencies of all the forms of concentration to consider. Revising merger guidelines will not suffice, as is clear from examining recent enforcement efforts. Antitrust enforcers must look beyond ownership issues and also consider health networks and other methods of integration. Aside from extensive government regulation of rates and services, antitrust laws are the best hope to maintain competitive pricing.

Laws, regulations and rules, Health care industry

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Community control and pricing patterns of nonprofit hospitals: an antitrust analysis

Article Abstract:

The authors examine the influence of communities in restraining nonprofit hospitals' use of their market power as expressed in higher prices, especially following an acquisition or merger. Results indicate that, where there is a more concentrated market, hospitals exercised market power by higher prices and acted independent of other local hospitals, indicating less community influence.

United States, Social aspects, Research, Prices and rates, Acquisitions and mergers, Market share, Price control, Price regulations, Hospitals, Voluntary, Voluntary hospitals

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