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The new health care law encourages collaboration by doctors and hospitals for cost savings, but a split has developed here as to just how far they can go without running afoul of antitrust laws....   >>>

The new health care law encourages collaboration by doctors and hospitals for cost savings, but a split has developed here as to just how far they can go without running afoul of antitrust laws.

An influential Republican member of the Federal Trade Commission, J. Thomas Rosch, said that without “vigorous antitrust enforcement,” the new alliances of health care providers could reduce competition and increase costs to consumers.

Mr. Rosch set forth his concerns in private letters to the White House and the federal Medicare agency. The letters, obtained by The New York Times, reveal a struggle between the Justice Department and the commission over who should police the market.

The internal debate creates uncertainty about antitrust enforcement policy at a moment when scores of hospitals, clinics and doctor groups are eager to band together and test innovative ways of delivering care. That uncertainty threatens to slow collaboration by health care providers. President Obama and other proponents say such cooperation could cut costs and improve care for millions of people.

When competitors collaborate, economists say, they can produce enormous efficiencies, but they may also be tempted to engage in monopolistic practices. The risk tends to be greatest in small- and medium-size communities dominated by one or two hospitals or health care systems, experts say.



** The excerpt is taken from NYT article, "Health Law Provision Raises Antitrust Concerns," written by Robert Pear which is linked below. Do click through to read more about how health care reforms and its implications on monopolies and other antitrust issues.**