Mergers and Acquisitions in Healthcare

If a healthcare entity is struggling financially, a merger or acquisition can help consumers by keeping that healthcare option from going out of business. However, concentrating market power can reduce competition and lead to dramatic price increases. For instance, some hospital mergers have resulted in 50 percent price increases. Thus, the federal government and state governments watch healthcare mergers for potential antitrust dangers.

I. The Clayton Act

For the federal government, the...