Antitrust Chronicle – Healthcare Mergers: A Post-Mortem

Antitrust Chronicle – Healthcare Mergers: A Post-Mortem

Hospital mergers have been a hot topic in the antitrust world for a few decades now. Some of these mega-mergers would remake the health care industry and there are debates as to whether the consolidation would be bad or good for consumers, both patients and insurers. Over the years, there has been significant progress towards […]

Healthcare Mergers: Four Key Pieces Of Evidence Used To Predict The Future

Healthcare Mergers: Four Key Pieces Of Evidence Used To Predict The Future

By David Dahlquist, Laura Greenspan, Leigh Oliver & Kimberly Rancour –  Merger litigation is most often an exercise in predicting the future competitive effects of a transaction. In order to do this, the prosecution and defense marshal various types of evidence to persuade the court of their respective predictions about the future competitive landscape. This […]

Key Takeaways From The Advocate-Northshore Merger Litigation

Key Takeaways From The Advocate-Northshore Merger Litigation

By Steven Tenn –  In the recently concluded Advocate-NorthShore litigation, the FTC successfully challenged a proposed merger of two healthcare systems with hospitals in the northern suburbs of Chicago. This article describes the FTC’s approach in that matter. By drawing on the key takeaways from the litigation, the parties in future hospital merger cases can […]

The Long, Slow Decline Of Elzinga-Hogarty And What Comes After

The Long, Slow Decline Of Elzinga-Hogarty And What Comes After

By Cory S. Capps, David Dranove & Zenon Zabinski –  In 2016, after initial losses at the district court level in its challenges to the Hershey-Pinnacle and Advocate-NorthShore hospital mergers, the FTC ultimately prevailed in the Third and Seventh Circuit Courts of Appeal. The authors explain why these two cases are likely to put an […]

Getting Market Definition Right: Hospital Merger Cases And Beyond

Getting Market Definition Right: Hospital Merger Cases And Beyond

By Martin Gaynor & Kevin E. Pflum –  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’ […]

Hospital Mergers – Retrospective Study To Improve Prediction

Hospital Mergers – Retrospective Study To Improve Prediction

By Christopher Garmon –  Over the past 20 years, significant progress has been made in the science of hospital merger forecasting, through the development of more realistic models and the rigorous analysis of consummated hospital mergers and other events. Economists developed new hospital merger screening tools from models of the negotiation between a hospital and […]

Merger-Specificity Of Quality And Cost Efficiencies In Hospital Merger Cases

Merger-Specificity Of Quality And Cost Efficiencies In Hospital Merger Cases

By David J. Balan –  A key factor in the analysis of hospital merger efficiencies is whether a claimed efficiency is “merger-specific,” meaning that it would likely be achieved with the merger under review, but not without it. While this principle is straightforward, determining the mergerspecificity of particular claimed efficiencies in real-world cases can be […]

A Novel Look At Antitrust Analysis In Health Insurance Markets

A Novel Look At Antitrust Analysis In Health Insurance Markets

By Barak D. Richman & Kevin A. Schulman –  The remarkable proposals for mergers of four of the five largest health insurance companies in the United States, Anthem with Cigna and Aetna with Humana, would have transformed the industry. The U.S. Department of Justice successfully filed to block these mergers due to concerns over market concentration. […]

Hospital Merger Control In The Netherlands: Was The Barn Closed In Time Or Has The Horse Already Bolted?

Hospital Merger Control In The Netherlands: Was The Barn Closed In Time Or Has The Horse Already Bolted?

By Marco Varkevisser & Erik Schut –  In this article, we discuss the track record of the Netherlands Authority for Consumers and Markets in hospital merger control. Due to the permissive approach that can be observed for more than a decade, Dutch hospital markets have become highly concentrated. This has at least put the potential […]

Dutch Hospital Mergers: No Evidence For Improvement Of Healthcare Quality

Dutch Hospital Mergers: No Evidence For Improvement Of Healthcare Quality

By Bart Broers & Ron Kemp –  Merging hospitals often claim positive effects of the merger on the quality of care delivered. Our study shows that mergers seem to have no clear effect on quality of care. This is an important finding for competition authorities when they have to weigh the quality improvement argument as […]