Quantifying Competitive Price Effects in Healthcare Provider Mergers

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This article reviews the different ways in which economists approach using changes in bargaining leverage to predict the effect of a a healthcare provider merger on prices.

In this article published in The Antitrust Source, Christopher V. Lau of Cornerstone Research reviews the different ways in which economists approach using changes in bargaining leverage to predict the effect of a healthcare provider merger on prices. This article explores four ways in which the academic literature, and the Courts, have addressed the quantification of potential consumer harm in the form of price effects from a healthcare provider merger, and details the advantages and disadvantages of each method as well as instances in which they have been applied in litigation.

This article was originally published in The Antitrust Source in December 2024.

Author

  • San Francisco

Christopher V. Lau

Principal