State Capital, in the state of Anywhere, has three
A Sherman Antitrust Act Application Question
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State Capital, in the state of Anywhere, has three
hospitals. You are the Chief Operating Officer of Best Medical Center, which is
affiliated with the state’s tertiary care center and teaching hospital 60 miles
away. Although not the largest hospital in State Capital, it does offer a
variety of specialty and boutique services and clinics. One of its clinics
specializes in cardiac rehabilitation and offers a broad range of services to
patients with cardiovascular disease. The other two hospitals also offer
cardiac rehabilitation, although their services are not as sophisticated and not
centrally coordinated. Two years ago Best Medical Center entered into an
exclusive contract with a cardiology practice in State Capital. Recently, a new
cardiologist Dr. Will moved into the area and applied for medical staff
privileges at your facility, which were denied based on the exclusive contract
with the cardiology practice. Dr. Will has threatened to sue on the grounds
that the denial of privileges is a violation of Sections 1 and/or 2 of the
Sherman Antitrust Act. Will Dr. Will succeed in such a lawsuit? Explain the
reasoning behind your assessment.
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