Antitrust Policy in Health Care Markets

The United States spends more on healthcare than other countries due to a lack of competition and monopolies in some markets. Antitrust enforcement can help reduce costs by challenging anticompetitive conduct. This book discusses monopoly, monopsony, cartels, merger policy, and antitrust enforcement.

Format: Hardback
Length: 350 pages
Publication date: 31 October 2022
Publisher: Cambridge University Press

The United States faces significantly higher healthcare costs compared to other countries, primarily due to a lack of competition in certain markets. Markets such as pharmaceuticals and medical equipment exhibit elements of monopoly, while health insurance demonstrates characteristics of monopsony. Additionally, collusion among competitors can occur in various markets, including generic drugs and the nurse labor market. While lawful monopoly and monopsony are beyond the scope of antitrust laws, collusion is not. When appropriate, vigorous antitrust enforcement can challenge anticompetitive conduct and help reduce healthcare costs.

This book delves into the topics of monopoly, monopsony, cartels of sellers and buyers, horizontal and vertical merger policy, and antitrust enforcement through private suits and the actions of antitrust agencies. The authors provide compelling evidence demonstrating how enforcing antitrust laws can foster competition and ultimately lower healthcare costs.

By addressing these market imbalances and promoting fair competition, the United States can work towards achieving a more efficient and affordable healthcare system for its citizens. It is essential to recognize the role of antitrust laws in promoting competition and reducing healthcare costs and to continue to enforce them effectively to ensure a healthier and more competitive marketplace.

ISBN-13: 9781316515204