Antitrust Law Application In Healthcare Organizations

Antitrust Law Application in Healthcare OrganizationsNameInstitutional AffiliationDate The application of the antitrust laws in the field of healthcare is significant since healthcare is one of the industries that generate income and it should not be treated in an exemption. There are numerous dramatic changes that are taking place in the healthcare industry and they are transforming its structure in different ways. The anti-trust laws were enacted so as to promote efficiency and at the same time to encourage competition and protect the public from the anti-competitive practices. The Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice (DOJ) have put in place a number of mechanisms to regulate the healthcare industry. Such laws include the Sherman Antitrust Act passed in 1890 CITATION Rob10 \l 1033 (Robin, 2010). In section 1 of the act, it prohibits any means of restraining trade in the healthcare industry. In section 2, the act hinders any efforts that are made to promote monopoly. The Clayton Act was also created later so as to curb the creation of monopolies before consummation. Section 3 of the act also prohibits any agreements that tend to lessen competition. Lastly, in section 7, the act outlaws the acquisitions of assets that belong to another business for the purpose of encouraging anti-competition. Merging of healthcare facilities is one of the ways through which healthcare organizations violate the antitrust laws. In my case study, I have selected the case of ProMedical Health System and its efforts in the acquisition of Maumee, Ohio based St Luke’s Hospital. In January 2015, ProMedical Health System made an appeal to a ruling that had blocked its efforts to acquire Maumee which is St. Luke’s Hospital to the Supreme Court CITATION Pau17 \l 1033 (Paul & Lawrence, 2017). In the year 2010, ProMedica and St. Luke's merged and as a result ProMedica became Lucas County common hospital and it became the dominant hospital in Ohio as it provided various healthcare services and it controlled more than 50% in the market on the section of the primary and secondary service...