Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-586b7cd67f-l7hp2 Total loading time: 0 Render date: 2024-11-26T00:12:47.488Z Has data issue: false hasContentIssue false

20 - Vertical Merger Policy

from Part V - Mergers and Acquisitions

Published online by Cambridge University Press:  24 November 2022

Roger D. Blair ,
Christine Piette Durrance  and
Tirza J. Angerhofer
Roger D. Blair
Affiliation:
University of Florida
Christine Piette Durrance
Affiliation:
University of Wisconsin
Tirza J. Angerhofer
Affiliation:
Duke University, North Carolina
Get access

Summary

Neither vertical mergers nor mergers of complementary input suppliers alter the structure of either the upstream or downstream market. As a result, assessing their competitive significance is more complicated and more subtle than assessing the competitive significance of a horizontal merger. In this chapter, we will tease out the competitive concerns that have shaped vertical merger policy. We discuss vertical mergers in the biotechnology industry, in managed care, and between physician groups and hospitals to illustrate the difficult evaluation task assigned to the Agencies.

Keywords

vertical merger policyphysician group acquisitionsVertical Merger Guidelines
Type
Chapter
Information
Antitrust Policy in Health Care Markets , pp. 457 - 478
Publisher: Cambridge University Press
Print publication year: 2022

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abelson, Reed. (2021). Doctors Accuse UnitedHealthcare of Stifling Competition. New York Times. www.nytimes.com/2021/04/01/health/unitedhealthcare-lawsuit.html.Google Scholar
Angerhofer, Tirza J., and Blair, Roger D.. (2021). Successive Monopoly, Bilateral Monopoly, and Vertical Integration. Review of Industrial Organization 59: 343–361.CrossRefGoogle Scholar
Baker, Laurence C., Bundorf, M. Kate, and Kessler, Daniel P.. (2016 ). The Effect of Hospital/Physician Integration on Hospital Choice. Journal of Health Economics 50: 1–8.CrossRefGoogle ScholarPubMed
Blair, Roger D., and Kaserman, David L.. (2009). Antitrust Economics. 2d ed. New York: Oxford University Press.Google Scholar
Capps, Cory, Dranove, David, and Ody, Christopher. (2018). The Effect of Hospital Acquisitions of Physician Practices on Prices and Spending. Journal of Health Economics 59: 139–152.CrossRefGoogle ScholarPubMed
Department of Justice and Federal Trade Commission. (2020). Vertical Merger Guidelines. www.ftc.gov/system/files/documents/reports/us-department-justice-federal-trade-commission-vertical-merger-guidelines/vertical_merger_guidelines_6-30-20.pdf.Google Scholar
Federal Trade Commission. (2021). FTC to Study the Impact of Physician Group and Healthcare Facility Mergers. www.ftc.gov/news-events/press-releases/2021/01/ftc-study-impact-physician-group-healthcare-facility-mergers.Google Scholar
Herper, Matthew. (2017). Company Will Raise $1 Billion to Create Blood Test to Detect Cancer. Forbes. www.forbes.com/sites/matthewherper/2017/01/05/grail-which-aims-to-invent-blood-test-to-detect-cancer-to-raise-1-billion/?sh=2483a1493792.Google Scholar
Illumina. (2020). Form 10-K. https://s24.q4cdn.com/526396163/files/doc_financials/2020/q4/13eff379-c1ce-48fe-a760-8ff5147866b2.pdf.Google Scholar
Illumina. (2021). Illumina Committed to Pursuing GRAIL Acquisition to Accelerate Access to Breakthrough Multi-Cancer Early Detection Blood Test. Illumina Press Release. www.illumina.com/company/news-center/press-releases/2021/32156cec-c392-4d23-be23-66d7729892db.html.Google Scholar
McLaughlin, David. (2021). Illumina Fights US Bid to Unwind $8 Billion Grail Takeover. Bloomberg Law. https://news.bloomberglaw.com/antitrust/illumina-fights-u-s-bid-to-unwind-8-billion-grail-takeover.Google Scholar
Morse, Susan. (2019). FTC Approves UnitedHealth Group $4.3 Billion Acquisition of DaVita, with Conditions. Healthcare Finance. www.healthcarefinancenews.com/news/ftc-approves-unitedhealth-group-43-billion-acquisition-davita-conditions.Google Scholar
Neprash, Hannah T., Chernew, Michael E., Hicks, Andrew L., Gibson, Teresa, and McWilliams, Michael. (2015). Association of Financial Integration between Physicians and Hospitals with Commercial Health Care Prices. Journal of the American Medical Association 175: 1932–1939.Google ScholarPubMed
Phillips, Noah Joshua, and Wilson, Christine S.. (2019). Statement of Commissioner Noah Joshua Phillips and Commissioner Christine S. Wilson: In the Matter of UnitedHealth Group and DaVita. Federal Trade Commission. www.ftc.gov/system/files/documents/public_statements/1529366/181_0057_united_davita_statement_of_cmmrs_p_and_w.pdf.Google Scholar
Premerger Notification Office Staff. (2021). HSR Threshold Adjustments and Reportability for 2021. Federal Trade Commission. www.ftc.gov/news-events/blogs/competition-matters/2021/02/hsr-threshold-adjustments-reportability-2021.Google Scholar
Robinson, James C., and Miller, Kelly. (2014). Total Expenditures per Patient in Hospital-Owned and Physician-Owned Physician Organizations in California. Journal of the American Medical Association 312: 1663–1669.CrossRefGoogle ScholarPubMed
Rodriguez, Carmen Heredia. (2019). Hospitals Chafe under a Medicare Rule That Reduces Payments to Far-Flung Clinics. NPR. www.npr.org/sections/health-shots/2019/04/23/716110288/hospitals-chafe-under-a-medicare-rule-that-reduces-payments-to-far-flung-clinics.Google Scholar
Weiser, Phil. (2019). Antitrust Challenge and Settlement to the UnitedHealth Group and DaVita merger Will Safeguard Competition, Cost, and Quality of Healthcare for Seniors in the Colorado Springs Area. Colorado Attorney General Press Release. https://coag.gov/press-releases/06-19-19/.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×