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Antitrust implications of alternative delivery systems.

E J Steren¹, B R Stewart

¹Ober, Kaler, Grimes & Shriver, Washington, DC, USA.

Clinical Laboratory Management Review : Official Publication of the Clinical Laboratory Management Association

|August 5, 1996

Summary

Collaborative clinical laboratory arrangements must comply with antitrust laws. Analysis focuses on preventing market power and ensuring procompetitive efficiencies outweigh any anticompetitive effects.

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Area of Science:

Healthcare Management
Law and Economics

Background:

Collaborative arrangements in clinical laboratories offer market development and service delivery efficiencies.
These collaborations are subject to federal and state antitrust laws aimed at preserving market competition.

Purpose of the Study:

To analyze the formation and operation of collaborative clinical laboratory arrangements under antitrust scrutiny.
To ensure that anticompetitive effects are minimal and outweighed by procompetitive efficiencies.

Main Methods:

Analysis of market power during the formation stage of new entities.
Evaluation of operational agreements, particularly price agreements, for necessity and efficiency.

Main Results:

Antitrust review assesses the potential for participants to exert market power (ability to raise prices).
Operational stage analysis determines if price agreements are essential for efficient functioning.

Conclusions:

Collaborative clinical laboratory ventures require careful antitrust evaluation at both formation and operational levels.
Balancing procompetitive benefits against potential anticompetitive risks is crucial for legal compliance and market efficiency.

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