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PubMed1996

How health networks and HMOs could result in public utility regulation.

Health networks and HMOs--as strategies to reform the American health system--are considered by many elected officials and providers to be the most effective way to improve the delivery of medical care at a reduced cost. Strongly swaying these proposals are the fiscal pressures that now require us to harness such entitlements as Medicare and Medicaid. As these health networks and capitated payment approaches are being aggressively forged by hospitals, physicians, and insurers, the probable consequences are that one alliance will eventually dominate most geographic regions (except for our nation's largest metropolitan areas) and these oligopolies will tend to behave as a monopoly. More simply stated, this article argues that many healthcare markets will either evolve into monopolies or, at best, oligopolies.

Antitrust Laws↗
PubMed1996

DOJ raises concerns about mergers and large physician networks.

Antitrust concerns about large physician networks typically have focused on the risk-sharing aspects of such networks; little attention has been paid to the impact these networks have had on the healthcare market. However, the Department of Justice has recently issued three business review letters regarding physician networks or mergers in New Jersey, California, and Minnesota which indicate that the level of market dominance created by proposed physician mergers or networks probably will be subject to closer scrutiny in the future.

Antitrust Laws↗
PubMed1996

Will we like tomorrow's giants?

The healthcare industry is buying into the benefits of being big. Merger and acquisition deals hit a pace of 2.4 per day among all types of providers during the first half of the year. But critics believe the time has come to rein in the rampant consolidation.

Antitrust Laws↗