Old and New Forms of Hospital Competition: Economic and Antitrust Issues

American hospitals have undergone substantial changes in the last quarter-century due to changes in medical technology, changes in payment policies by Medicare and other third-party payers, and new forms of competition from outpatient care and specialty hospitals. Still, the future of the hospital sector is a major issue in all discussions about the future of health policy because the hospital sector remains the largest single component of all national health expenditures (31.2 percent in 2008). Hospitals also play an important role in the economies of almost all towns and cities and are often the largest employer in a metropolitan area.Panelists at this conference will look at recent research and analysis of the hospital market with emphasis on the changing nature of competition and the role of antitrust enforcement. The country’s leading researchers on hospital economics and legal issues will present their analysis of recent changes in the hospital sector and discuss the implications for public policy. Matthew J. Reilly, assistant director of mergers at the Bureau of Competition of the Federal Trade Commission, will deliver the keynote address on the current state of antitrust policy in the health care sector.
8:00 a.m.

Registration

8:30  

Panel I:  Introduction and Overview
Welcome:  

John Schneider, Health Economics Consulting Group

Presenter:

William D. White, Cornell University

“Competition and the American Hospital”

Moderator:

Robert B. Helms, AEI

9:00

Panel II:  Hospital Mergers and Antitrust Policy

Presenters:

H. E. Frech III, University of California, Santa Barbara

“Overview of Hospital Antitrust Methods and Issues”

Monica Noether, CRA International

“Recent Hospital Antitrust Decisions”

Robert J. Town, University of Minnesota

“Welfare Effects of Hospital Mergers”

Discussant: 

Robert F. Leibenluft, Hogan & Hartson

Moderator: 

Robert Helms, AEI

10:00

Panel III:  Effects of Hospital Competition

Presenters: 

David Hyman, University of Illinois

“The FTC Report: A Five-Year Retrospective”

 Vivian Wu, University of Southern California

“Effects of Competition on Prices and Efficiency”

Discussant:

William D. White, Cornell University

Moderator:

Joseph Antos, AEI

11:10 

Panel IV:  New Entry in Hospital Markets

Presenters: 

Kathleen Carey, Boston University

“Specialty Hospitals, ASCs, and Competition”

John Schneider, Health Economics Consulting Group

“Physician Ownership and Referrals”

Discussants: 

Steve Speil, Federation of American Hospitals

Jeff Stensland, MedPAC

Moderator:

Joseph Antos, AEI

12:30 p.m. 

Luncheon  

12:50

Keynote Address: Matthew J. Reilly, Federal Trade Commission

1:30

Adjournment


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