Implications for healthcare competition and consumers

Reference no: EM133339620

Assignment:

Too Big Hospital (TBH) Informs the Federal Trade Commission (FTC) of its intent to merge with Buy Me Hospital (BMH). Both hospitals are located in the metropolitan Bowling Green, KY area. TBH current provides roughly 40% of healthcare services in the market, and BMH provides roughly 20%. Both compete with Callous Hospital, which provides roughly 40% of healthcare services in the same area. TBH informs the FTC that it wants to concentrate cardiac and oncology specialty services at TBH and neurology and orthopedic services at BMH, claiming that this streamlining will benefit patients. It also plans to phase out obstetric services (i.e. pregnancy and childbirth) at both hospitals, leaving Callous Hospital with all of this service except for in emergencies, in which case both BMH and TBH would be able to provide basic emergency pregnancy care and transfer to Callous Hospital for care they cannot provide. The FTC raises concerns about the merger and the case ends up before you, a judge in the Federal District Court, Western District of Kentucky.

ANSWER BOTH QUESTIONS

(a) As the judge, would you use the rule of reason or "per se" violation rule to decide the case, and why? (1 to 2 sentences)

(b) As the judge, what factors might concern you about the merger and its implications for healthcare competition and consumers? Explain. (2 to 3 sentences)

Reference no: EM133339620

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