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An Antitrust Analysis of Non-Profit Hospital Mergers

ERWIN A. BLACKSTONE and JOSEPH P. FUHR, JR.
Review of Industrial Organization
Vol. 8, No. 4 (August 1993), pp. 473-490
Published by: Springer
Stable URL: http://www.jstor.org/stable/41798453
Page Count: 18
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An Antitrust Analysis of Non-Profit Hospital Mergers
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Abstract

This paper considers such issues involved in non-profit hospital mergers as relevant product and geographic markets and the impacts of mergers on competition. The roles of non-price competition, entry barriers, and merger-generated efficiencies are considered. Close attention is given to the relevance of the Justice Department Merger guideline to the hospital industry. Through detailed examination of four litigated or challenged cases, the geographic market is shown to depend upon particular medical services. Outpatient services are found to comprise a separate market from inpatient hospital services, and non-profit status is determined to warrant the usual antitrust merger treatment.

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