Download or read book Geographic Markets in Hospital Mergers a Case Study written by Federal Trade Federal Trade Commission and published by CreateSpace. This book was released on 2014-09-13 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: In three recent hospital merger cases, the courts concluded that the merged hospital would be unable to increase price profitably because of competition from distant hospitals. In reaching this conclusion, the courts found the following: hospitals earn high margins on the last patients that they serve; given these high margins, a small price increase would be unprofitable if even a relatively small percentage of patients switched to other hospitals; many of the merging hospitals' patients live in "contestable" zip codes, where a large percentage of patients already use other hospitals; a price increase at the merging hospitals would prompt a large number of these patients to switch to other hospitals; and this amount of switching would make the price increase unprofitable. This book argues that the courts in these cases erred in accepting the defendants' argument that switching by patients living in "contestable" zip codes would make a price increase at the merging hospitals unprofitable. Specifically, this book examines the behavior of patients following a merger similar to those analyzed by these courts and finds that a large price increase prompted little switching by patients living in "contestable" zip codes.
Download or read book Geographic Markets in Hospital Mergers written by and published by . This book was released on 2001 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The competitive effects of not for profit hospital mergers a case study written by Michael G. Vita and published by DIANE Publishing. This book was released on 1999 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Competitive Effects of Not for profit Hospital Mergers written by and published by . This book was released on 1999 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Health Care Mergers and Acquisitions Handbook written by and published by American Bar Association. This book was released on 2003 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt: The health care industry continues to undergo unprecedented consolidation. Health care providers and payors alike have pursued a wide variety of integrative strategies to achieve efficiencies or other business advantages. The Health Care Mergers and Acquisitions Handbook is designed to educate the practitioner about the antitrust analysis of mergers and acquisitions within the health care industry. Over the past two decades there has been an extraordinary amount of litigation related to challenges of hospital mergers. Each chapter identifies and analyzes important antitrust issues governing such consolidations. Accordingly, the first several chapters are devoted to a detailed treatment of substantive issues peculiar to such mergers: an introduction to hospital merger litigation, describing trends in litigation and the way in which such mergers are analyzed; issues unique to market definition, including product market definition and geographic market definition; the competitive effects of hospital mergers, assessing the evidence necessary to establish a prima facie case in a merger challenge and the rebuttal arguments offered by merging parties; a unique rebuttal argument offered by merging hospitals that is treated separately due to its prominent role in hospital merger litigation - the role and significance of efficiencies in determining the competitive merits of such mergers; the potential applicability of the state action doctrine to hospital mergers. In addition to a substantive treatment of hospital mergers, the Handbook also addresses; combinations of health care management organizations (HMOs) and physician practice groups; the analysis used by the enforcement agencies when reviewing mergers of HMOs; antitrust issues posed by physician practice consolidations. The appendix contains a chart summarizing litigated hospital mergers.--
Download or read book The Competitive Effects of Not For Profit Hospital Mergers written by Federal Trade Commission and published by CreateSpace. This book was released on 2014-09-14 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: Applying conventional horizontal merger enforcement rules to mergers of nonprofit hospitals is controversial. Critics contend that the different objective function of not-for-profits entities should mitigate, and possibly eliminate, competitive concerns about mergers involving nonprofit hospitals. We provide evidence relevant to this debate by analyzing ex post a horizontal merger in a concentrated hospital market. Here, the transaction reduced the number of competitors (both nonprofit) in the alleged relevant market from three to two. We find that the transaction resulted in significant price increases; we reject the hypothesis that these price increases reflect higher post-merger quality. This study should help policymakers assess the validity of current merger enforcement rules, especially as they apply to not-for-profit enterprises.
Download or read book Getting Market Definition Right written by Martin Gaynor and published by . This book was released on 2017 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: In 2016 the Federal Trade Commission (“FTC”) lost motions for preliminary injunction in two separate hospital mergers. In both cases the district courts rejected the FTC's geographic market definition based on flawed interpretations of the “hypothetical monopolist” test. Fortunately, the appeals courts correctly identified the district courts' errors and reversed their decisions. In this article, we review the process used by the FTC and the Antitrust Division of the Department of Justice to define markets and discuss how this process applies to the markets for hospital services specifically. We summarize the courts' opinions in these two hospital merger cases and discuss the ways in which the district courts erred in their analyses and how the appeals courts' decisions will affect future merger cases.
Download or read book A Structural Approach to Market Definition With an Application to the Hospital Industry written by Martin Gaynor and published by . This book was released on 2011 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: Market definition is essential to merger analysis. Because no standard approach to market definition exists, opposing parties in antitrust cases often disagree about the extent of the market. These differences have been particularly relevant in the hospital industry, where the courts have denied seven of eight merger challenges since 1994, due largely to disagreements over geographic market definition. We compare geographic markets produced using common ad hoc methodologies to a method that directly applies the â??SSNIP testâ?? to hospitals in California using a structural model. Our results suggest that previously employed methods overstate hospital demand elasticities by a factor of 2.4 to 3.4 and define larger markets than would be implied by the merger guidelines's hypothetical monopolist test. The use of these methods in differentiated product industries may lead to mistaken geographic market delineation, and was likely a contributing factor to the permissive legal environment for hospital mergers
Download or read book The Price Effects of Hospital Mergers written by Federal Trade Commission and published by . This book was released on 2014-09-25 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: This consummated merger combined two hospitals located close together in the Oakland-Berkeley region of the San Francisco Bay Area. The greater metropolitan area contained many other hospitals that offered a similar range of services, but which were located farther away. A central issue raised by the Sutter-Summit transaction was whether travel costs were low enough such that these hospitals were a sufficient constraint on the merging parties to prevent an anticompetitive price increase. We use detailed claims data from three large health insurers to compare the post-merger price change for the merging parties to the price change for a set of control group hospitals. Our results show that Summit's price increase was among the largest of any comparable hospital in California, indicating this transaction may have been anticompetitive.
Download or read book Evaluating the Performance of Merger Simulation written by Yaa Akosa Antwi and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Antitrust enforcement in the hospital industry has been an area of sharp contention in recent years. Prior to the decision in the Evanston Northwestern case in 2005, the Federal Trade Commission and the United States Department of Justice had lost the last seven hospital cases. One of the reasons for the failure of the government to prevail in these court cases has been their inability to convince the courts to accept their definition of a geographic market. In reviewing mergers, the antitrust enforcement authorities seek to determine what effects the proposed merger would have on prices, quality, and other related aspects of the prospectively merging firms' services. Most commonly, the primary focus is on the effect of the prospective merger on prices. There are a number of different approaches to the evaluation of hospital mergers, and these approaches often lead to differing predictions about the effects of the merger on hospital prices. In this paper we propose a method of hospital merger analysis which relies, in part, on calculating an index of hospital competition called the Logit Competition Index (LOCI). LOCI is calculated using hospital discharge data. Using these data, discharges are organized into types, the market shares of the hospitals in the analysis are calculated within these types, and then these market shares are aggregated together into a numerical index. Changes in this index due to a merger are theorized to predict the price changes caused by the merger. Consequently, our methodology does not require the definition of a geographical market. We apply our method to simulate merger effects of consummated and hypothetical mergers using data of hospitals in the state of California from 1992 to 2004. We find that the wave mergers that happened in California in the 1990's led to substantial increase in price not only for merging firms but also non-merging firms. Finally, because of the long span of our data, we are able to compare our predicted price increase with actual price increase of consummated mergers. Our methodology predicts well actual changes in price due to merger. These results have important implications for merger analysis in hospital markets and also for antitrust enforcement. It presents antitrust authorities with a methodology does not rely on geographic market definition but predicts fairly well price increases due to mergers.
Download or read book The Quality Effects of Hospital Mergers written by Cory Stephen Capps and published by . This book was released on 2005 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Antitrust Law Journal written by and published by . This book was released on 1986 with total page 1136 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Antitrust and Competition in Health Care Markets written by Martin Gaynor and published by . This book was released on 1999 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper we review issues relating to antitrust and competition in health care markets. The paper begins with a brief review of antitrust legislation. We then discuss whether and how health care is different from other industries in ways that might affect the optimality of competition. The paper then focuses on the main areas in which antitrust has been applied to health care: hospital mergers, monopsony, and foreclosure. In each of these sections we review the relevant antitrust cases, discuss the issues that have arisen in those cases, and then review the relevant economics literature and suggest some new methods for analyzing these issues.
Download or read book Competition Policy and Merger Analysis in Deregulated and Newly Competitive Industries written by Peter C. Carstensen and published by Edward Elgar Publishing. This book was released on 2008-01-01 with total page 265 pages. Available in PDF, EPUB and Kindle. Book excerpt: The thorough analyses presented in the book provide the reader with a good overview of the deregulation process in the respective industries. . . Competition Policy and Merger Analysis in Deregulated and Newly Competitive Industries is a valuable resource for researchers of law, economics, and political science. . . Volker Soyez, European Competition Law Review This comprehensive book contains case studies on the evolution of competition policy, with an emphasis on merger policy, for seven major US industries that have experienced substantial deregulation in the past forty years electricity, natural gas, telecommunications, railroads, airlines, hospitals and banking. Also included is a comparison of the EU s experience in attempting to bring about competition in the energy, finance, and airline industries. The contributors to the volume, each a recognized expert on the industry examined, explore the positive and negative implications of the substitution of market-oriented processes for historic patterns of command and control regulation. The chapters reveal clear similarities in the economic, legal and public policy issues that have arisen following deregulation of these economic sectors. Together they provide a good basis to discern the consistency of the problems and the relative success of differing responses to these issues over a range of industries going through similar transformation. While taking a basically positive view of the movement away from direct regulation, the contributors identify a number of continuing problems with achieving workable competition in these industries. The thorough analyses presented here will be of great value to law, economics, and political science researchers interested in deregulation, economic consultants advising government agencies or private parties, attorneys who focus on deregulated industries, policy planners at the agencies overseeing these industries, and students in advanced seminars on economic regulation.
Download or read book The Price Effects of Hospital Mergers written by Steven Tenn and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mohanty V St John Heart Clinic S C written by and published by . This book was released on 2005 with total page 744 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Improving health care a dose of competition written by and published by DIANE Publishing. This book was released on with total page 361 pages. Available in PDF, EPUB and Kindle. Book excerpt:
