Wednesday, June 12, 2024

Cross-Market Hospital Mergers: Assessing Likely Harm and Implications for Government Action

Cross-Market Hospital Mergers: Assessing Likely Harm and Implications for Government Action

 

Greg Vistnes

Charles River Associates (CRA)

Abstract

Commentators are increasingly calling for government action to investigate, block or regulate “cross-market” hospital mergers. This article assesses the evidence relating to the likelihood of harm from such mergers and shows that the empirical evidence supporting any specific theory of cross-market harm is both limited and partially contradictory. The article then identifies several conditions that can be used to help assess the likelihood of cross-market harm and examines the extent to which those conditions were satisfied in several recent government cross-market investigations. This discussion suggests that, while investigations of cross-market mergers may be warranted, the government should proceed cautiously before challenging or regulating them.

https://lawprofessors.typepad.com/antitrustprof_blog/2024/06/cross-market-hospital-mergers-assessing-likely-harm-and-implications-for-government-action.html

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