Anti-Trust In Healthcare

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Anti-trust Name Institutional Affiliation Anti-trust The role of antitrust laws in healthcare is to encourage a competitive and free marketplace. These laws are designed to safeguard the public from the hostile impacts of monopoly power. All state governments and federal governments have such law in place that reflect a public policy standard that a competitive marketplace safeguards consumers, confines private economic influence, and yields the best provision of quality goods and services at minimal costs (Cleverley, Song & Cleverley, 2011). Antitrust lawsuits are likely to occur in outright mergers in terms of Health Care Organizations (HCOs). With new mergers, HCOs tend to acquire increased…show more content…
FTC is paying attention to healthcare matters in a significant manner. As much as healthcare professionals and senior management perceive to be undertaking what’s best for the patient, it’s not the same viewpoint as the FTC. The FTC views HCOs as any other business that competes in a market with numerous challenges and risks such as monopoly. With this in mind, the Renown Health organization indulged in uncompetitive practices by acquiring or merging with the only two main cardiology medical groups in Reno. This increased its market share to above 80% in the cardiology practice (Gamble, 2013). Below 50% would not have attracted any concerns from FTC, but 80% is a monopolistic type of control likely to discourage competition. The complaints were likely to emerge from grievances by health plans and payers in the domestic market who feared amplified reimbursement rates (Cleverley et al., 2011). Under the antitrust laws, the Clayton Act forbids mergers and acquisitions that might considerably lessen competition in any line of trade and any sector of the country (Miles, 2013). This is significantly addressed in the 1996 Statements of Antitrust Enforcement Policy in Health Care. The statements offer guidelines in preventing antitrust issues from discouraging activities potentially yielding lower healthcare costs, enhanced competition, and enlarged consumer…show more content…
As HCOs move into mergers and acquisition for improved healthcare delivery, the market side of it is not to be ignored. Unplanned or risky mergers and acquisitions can result in antitrust lawsuits leading to fines, penalties, and subsequent losses. Where mergers and acquisitions discourage competition by increasing market share or applying monopoly, they can be sure to get a visit from the FTC. The FTC has proved to pay significant attention to how HCOs run their matters in terms of encouraging free and competitive markets. HCOs can avoid the FTC by applying models that consider market oriented aspects such as market share, competition, and monopolistic
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