Could a merger between rival firms create a stronger second competitor to the market leader in a way that strengthens competition and benefits consumers? Recently, the Massachusetts Health Policy Commission (HPC) analyzed this issue in its evaluation of a 2017 merger of several hospital systems in the Boston area. Specifically, the HPC evaluated whether the new system would be able to compete more effectively with Partners HealthCare, the largest and most expensive healthcare system in the region, and thereby reduce overall healthcare costs. Partner Cory Capps, Senior Economist Kayuna Fukushima, and Managers Tetyana Shvydko and Zenon Zabinski review HPC’s analysis of competitive issues raised in this transaction.
Cory Capps, PhD, Kayuna Fukushima, PhD, Tetyana Shvydko, PhD, and Zenon Zabinski, PhD
CPI Antitrust Chronicle