“The federal government needs to revisit policies and procedures regarding anti-competitive behaviors ( i.e. behaviors against competition) in the hospital industry, in light of the dramatic merging that is rapidly developing. In particular, the prospect of large and medium-size market areas being dominated by as few as three major hospital systems—or even two—should lead the Federal Trade Commission (FTC), and the U.S. Department of Justice to monitor those markets carefully and to determine the consequences for the health of the local economy. These agencies should establish clear criteria for determining whether meaningful competition exists. Corrective action should be taken when appropriate.”
Weeks, E. et al. (1998). Assessing the Early Impact of Hospital Mergers An Analysis of the St. Louis and Philadelphia Markets. Economic and Social Research Institute, Washington, DC.
It is essential to recommend that under any regulatory system or requirement, a part of role and mergers should always guarantee competition works in the interest of patients and their family. Additionally, the right of patient to decide his or her healthcare options is equally a benchmark. A health insurance provider or healthcare provider may incorporate anticompetitive behavior to illegally procure, preserve and improve market share, and to delay the sweats of current and potential competitors who may happen to establish locally. Government practice to reduce competition is not so much important in a free economic system where competition is the driving forces of business opportunities and profits accumulation. However, in light of the dramatic hospital and health organizational mergers that are currently developing, there are mixed opinions to the. This notion of agreement, according to the FTC Chairman, Jon Leibowitz said, “some mergers can lockup local markets, leading to higher prices for patients and insurance companies with few other places to turn. However, if we want to do something about controlling costs in health care, we have to challenge anticompetitive hospital mergers. A remedial action should be implementing tough penalties and fines for organizations who fail to stay within their dividing territories.
The wall Street Journal. ( March 18, 2012). Regulators Seek to Cool Hospital-Deal Fever. Retrieved January 31, 2013 from http://online.wsj.com/article/SB10001424052702303863404577286071837740832.html#articleTabs%3Darticle
