Hospital Management

Hospital Management Case Studies Case (20 Marks) The definition of a relevant geographic market has proven to be one of the most daunting components of a hospital merger case. Nonetheless some guiding principles are clear. The hypothetical monopolist test of the Merger Guidelines should be used to define geographic markets in hospital merger cases.

The types of evidence used in all merger cases such as strategic planning documents of the merging parties and customer testimony and documents should also be used to delineale relevant geographic markets in hospital merger cases. The agencies believe that courts have given insufficient weight to payor testimony and documents in particular. The agencies encourage further research to determine the circumstances in which patients will travel to distant hospitals in response to price increases.

Answer the following question. Q1. Define the term ‘Geographic Market’? Q2. Define the term Merger and explain the guidelines of the Merger? Q3. Describe the term ‘Payor Testimony’? Q4. Patients willingness to travel – How far and why? Comment.