Redirecting the Analysis in Hospital Mergers
Citation: 105 Geo L.J. (2017)
There is currently a glaring gap between the economic tools available in antitrust analysis and the practical application of such tools by antitrust attorneys and judges. This disconnect is blatantly evident in the context of hospital mergers, where courts are allowing anticompetitive hospital mergers to go forward and harm consumers by facilitating more expensive, lower quality medical services. For years, courts and lawyers have relied on structural methods of analysis, such as market shares and HHIs, in mergers within all industries. However, such methods are arbitrary and burdensome, primarily because traditional methods typically create overly broad geographic markets that allow anticompetitive mergers to go unnoticed.