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Journal of Medical Systems

, Volume 13, Issue 4, pp 193–203 | Cite as

Exclusive arrangments in the hospital industry

  • Erwin A. Blackstone
  • Joseph P. FuhrJr.
Articles

Abstract

There have been numerous antitrust cases concerning exclusive hospitals privileges. The plaintiff often alleges both that he was foreclosed from the market and that an illegal tying agreement exists. This paper which draws heavily from the cases concludes both that the relevant market for hospital based physicians is national and that the impact on competition is minimal. The hospital frequently initiates the exclusive arrangement which suggests that efficiency is enhanced. Our analysis also shows that the rying claims are generally unpersuasive. However, exclusive arrangements on occasion may be a device to exclude competitors. Finally, economic criteria are developed to help determine the desirability of particular exclusive arrangements.

Keywords

Base Physician Relevant Market Economic Criterion Hospital Industry Antitrust Case 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Plenum Publishing Corporation 1989

Authors and Affiliations

  • Erwin A. Blackstone
    • 1
    • 2
  • Joseph P. FuhrJr.
    • 1
    • 2
  1. 1.From the Department of EconomicsTemple UniversityPhiladelphia
  2. 2.the School of ManagementWidener UniversityChester

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