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How hospitals can avoid antitrust exposures.

Healthcare Financial Management : Journal of the Healthcare Financial Management Association

|December 10, 1991

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Healthcare organizations face increasing antitrust risks due to diverse business activities. Directors and officers liability insurance can mitigate these emerging financial exposures for institutions and their leaders.

Area of Science:

Healthcare Management
Risk Management
Antitrust Law

Background:

Healthcare institutions are diversifying business operations.
This diversification increases exposure to antitrust liability.
Assets of both institutions and their leadership are at risk.

Purpose of the Study:

To inform Chief Financial Officers (CFOs) about emerging antitrust risks.
To recommend risk transfer strategies for healthcare organizations.
To highlight the importance of directors' and officers' liability insurance.

Main Methods:

Analysis of legal and financial trends in healthcare.
Review of antitrust case law impacting healthcare providers.
Examination of insurance products for corporate liability.

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Main Results:

Growing business diversity correlates with heightened antitrust exposure.
Leadership and institutional assets are vulnerable to litigation.
Specialized insurance is crucial for mitigating these risks.

Conclusions:

Healthcare CFOs must proactively manage antitrust risks.
Directors' and officers' liability insurance and entity liability insurance are essential risk transfer tools.
Strategic insurance planning protects healthcare organizations and their executives.