Economics of Cross-Market Hospital Mergers
This Toolkit is brought to you by AHLA's Antitrust Practice Group.
- May 26, 2023
- Joshua Lustig , Charles River Associates
- Sean May , Charles River Associates
- Fei Tan , Charles River Associates
The ongoing wave of consolidation in the hospital industry has generated heightened scrutiny by both federal and state antitrust regulators. While regulators have traditionally focused on transactions in the same markets, they have shown increasing interest in analyzing transactions among providers in different markets. Such transactions are now commonly referred to as cross-market transactions. In this toolkit, the authors discuss the economic theory behind cross-market hospital mergers and summarize some recent cases where antitrust regulators appeared to have considered these new theories in their assessment of the competitive effects of the transactions.
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