Health Law Case Solution
Legal advice/opinion to your hospital
Based on the case studies including Federal Trade Commission vs. Advocate Health Care Network;it is analyzed that the Federal Trade Commission has issued the administration complaint alleging that the combined entity resulted from merger would lower the competition level, operate the majority of the hospital in the area as well as control more than 50 percent of the general acute care inpatient services. Similarly, in the case of merger between Saint Al photons Medical Center and St. Luke’s Health System, the Federal Trade Commission; the competing healthcare system as well as the State of Idaho,filed suit against the health system, complaining the antitrust violation. Among other events, the court rejected the assertion of defendant hat efficiencies related to the hospital’s physician integration & change from free-for-service to the risk-based remuneration outweighed the effects of the anti-competition of the high percentage of market share in the market for physician services resulted from the merger. In the case of United States v. Anthem;it was alleged that the merger would lower the competition in the national account market, which would last unfavorable impact on the entry, medical-cost and loss of innovation.
Based on the assumption that the hospital is located in rural area with the population of 500000 and the hospital is the largest community hospital and the competitor is the small sized hospital in the similar area, in accordance with the Section 7 of the Clayton Act; the hospital should not merge with the market competitor due to the fact that the merger between a largest community hospital and a small competitor would-decrease the competition and it has the potential to create a monopoly.
In addition to this, the robust and vibrant competition between the competitors in the healthcare sector, offer services to the patients at the low cost and they provide more appropriate care and most importantly, they deliver more patient-centric outcomes as compared to the less competitive areas. Additionally, the healthcare markets with the fierce market competition, benefits the consumers, because it encourages the innovation, improvement of quality and decrease in prices.(ALTMAN, 2020).
The merger between largest the community hospital and a small competitor would hinder the hospital’s-abilities to apply and foster innovation and improve the business practices for continuous quality and clinical improvements. The merger would not allow them to consistently grow both in terms of how it delivers services and capital projects with the leveraging technologies, in order to build capacity to effectively and safely treat multiple diseases in under-services, remote and rural areas……………….
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