Antitrust Policy in Health Care Markets

Explains how monopoly and monopsony contribute to soaring health care costs in the US and explores antitrust remedies.

Roger D. Blair (Author), Christine Piette Durrance (Author), Tirza J. Angerhofer (Author)

9781316515204, Cambridge University Press

Hardback, published 8 December 2022

350 pages
23.5 x 15.7 x 3.4 cm, 0.91 kg

'This book situates contemporary antitrust health care debates with an important combination of economics, law, and policy considerations.' Daniel Sokol, USC Marshall School of Business

Health care costs in the United States are much higher than in other countries. These cost differences can be explained in part by a lack of competition in the United States. Some markets, such as pharmaceuticals and medical equipment, have elements of monopoly. Other markets, such as health insurance, have elements of monopsony. Many other markets may be subject to collusion on prices, such as generic drugs, or wages, such as the nurse labor market. Lawful monopoly and monopsony are beyond the reach of antitrust laws, but collusion is not. When appropriate, vigorous antitrust enforcement challenging anticompetitive conduct can aid in reducing health care costs. This book addresses monopoly, monopsony, cartels of sellers and buyers, horizontal and vertical merger policy, and antitrust enforcement through private suits as well as the efforts of the antitrust Agencies. The authors demonstrate how enforcing antitrust laws can ultimately promote competition and reduce health care costs.

1. Health care markets and competition policy
2. Antitrust policy in the United States
Section I. Monopoly: 3 Patents and monopoly pricing of pharmaceuticals
4. Patents and exclusionary product hopping
5. Bundled discounts and peace health
Section II. Seller Cartels: 6. Collusion in health care markets
7. Collusion in generic drug markets
8. The hatch-waxman act, patent infringement suits, and reverse payments
Appendix
The economics of settlements
9. The alleged insulin conspiracy
10. Licensing of health care professionals
Section III. Monopsony: 11. Monopsony, dominant buyers, and oligopsony
12. Countervailing power – physician collective bargaining
13. Group purchasing organizations, monopsony, and antitrust policy
Section IV. Buyer Cartels: 14. Collusion in the nurse labor market
15. Collusion in the oocyte market
16. No-Poaching agreements and antitrust policy
Section V. Mergers and Acquisitions: 17. The economics of horizontal mergers
18. Horizontal merger policy
19. The economic theory of vertical integration
20. Vertical merger policy
21. Concluding remarks.

Subject Areas: Medical & healthcare law [LNTM], Economics, finance, business & management [K]