Defining Hospital Competitive Markets

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Clarifying Often Nebulous and Contentious Terminology

[By Staff Reporters]

According to Robert James Cimasi; MHA, CMP™ of Health Capital Consultants LLC in St. Louis, MO; the definition of a hospital’s “market” is often nebulous.

Ambiguous Terms

Some entities are defined by terms as ambiguous as “acute care inpatient hospitals,” “specialty hospitals,” or “anchor hospitals.” This ambiguity occurs because healthcare is increasingly provided on an outpatient basis, and general acute care inpatient hospitals face competition from a range of allied healthcare providers for the medical services they deliver.


US Supreme Court Explains

For example, none other than the US Supreme Court has explained that the determination of relevant hospital product and geographic markets is “a necessary predicate” to deciding whether a hospital merger contravenes the Clayton Act (antitrust).


For additional information, please see United States v. Marine Ban Corporation Inc., 418 U.S. 602, 618 (1974) (citing United States v. E.I. Du Pont De Nemours & Co., 353 U.S. 586, 593 (1957); Brown Shoe Co. v. United States, 370 U.S. 294, 324 (1962).


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[Mike Stahl PhD MBA] *** [Foreword Dr.Mata MD CIS] *** [Dr. Getzen PhD]


2 Responses

  1. I could not agree more with Bob Cimasi

    Specialized hospitals are often able to target particular patient cases, treatments and surgical procedures that allow them to best utilize their resources. Health care professionals contend that the focused mission and dedicated resources of hospitals with a chronic disease specialty, for example, at once improve quality and reduce costs.

    Efficiency combined with high quality patient care will likely contribute to moving health care in a more specialized, chronic disease-specific direction. The facilities [and practitioners] that meet these constantly evolving demands will help shape the future role of hospitals in the health care industry.

    Dr. David Edward Marcinko; MBA
    [ME-P Publisher-in-Chief]


  2. I recently learned that about 75 of the 127 physician-owned hospitals under construction won’t meet an Aug. 1, 2010 deadline on expansion requirements set in the revised Senate health reform bill, according to Physician Hospitals of America.

    My guess is that this model is not “politically correct”; any thoughts?


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