HomeWebcastCross-Market Mergers in the Healthcare Industry: The New Focus of Antitrust Enforcement?
cross-market mergers CLE CLE

Cross-Market Mergers in the Healthcare Industry: The New Focus of Antitrust Enforcement?

Live Webcast Date: Wednesday, July 13, 2016 from 12:00 pm to 2:00 pm (ET)
CLE Mergers and AcquisitionsRecording

cross-market mergers CLE

Join us for this Knowledge Group cross-market mergers CLE Webinar. Nowadays, many hospital operators resort to cross-market mergers to cope up with the ever changing healthcare landscape. When entering into these transactions, healthcare providers may gain greater bargaining leverage against payers and may consequently lead to higher prices. Considering these possible anticompetitive effects, hospital operators should brace themselves as these transactions appear to be the new focus of antitrust enforcement.

In this two-hour Webcast, a panel of distinguished professionals and thought leaders assembled by The Knowledge Group will provide an in-depth discussion of Cross-Market Mergers in the Healthcare Industry and will help the audience understand the fundamental and complex aspects of this significant topic. Speakers will also offer best practices in developing and implementing effective risk mitigation strategies while ensuring compliance with applicable laws.                

Key issues that will be covered in this course are:

  • Cross-Market Mergers - An Overview
  • Recent Legal Issues and Challenges
  • Possible Competitive Implications of Cross-Market Transactions
  • Potential Antitrust Risks
  • Best Risk Mitigation Strategies

Who Should Attend

  • Antitrust Lawyers
  • Health Care Law Attorneys          
  • Health Industry Advisors
  • Health Insurance Companies      
  • Health Policy Directors   
  • Health Services Professionals
  • Healthcare Organizations

Faculty

cross-market mergers CLE
L. Pahl Zinn
Member
Dickinson Wright PLLC
cross-market mergers CLE
Dr. Paul Wong
Consultant
NERA Economic Consulting

Click Here to Read Additional Material

cross-market mergers CLE

SEGMENT 1:
L. Pahl Zinn, Member
Dickinson Wright PLLC
  • What is a Cross-Market Merger in Healthcare?
    • Antitrust Definitions:
      • Relevant Product Market
      • Relevant Geographic Market
    • Health Care Industry:
      • Relevant Product Market
        • Merger of two non-competing providers in same geographic market
        • Provider merger with non-competing medical group in same geographic market
      • Relevant Geographic Market
        • Merger of two competing major providers in different geographic markets
        • Merger of urban provider with rural provider in different geographic markets
  • What is the underlying theory in cross-market mergers?  Is it legal or economic?
    • Deviation from traditional merger analysis (ie horizontal guidelines and demand side substitution)
    • Horizontal Merger Guidelines
    • Underlying connection in mergers which cross-geographic markets is primarily economic
      • Theory: A merger which creates cross-market provider systems may result in market power as providers decide to withhold one or more of their hospitals from participating in a given health plan (ie payer)
      • Differentiate from mergers which are cross different product markets such as a provider which
  • Examples:
    • Product cross-market – to a certain extent St. Luke’s
      • Merger of two providers in same geographic market which provide different specialties
      • Vertical merger of provider with a practice specialty in same geographic market
    • Geographic cross-market – end of FTC’s recent winning streak perpetuated, in part, by relying on narrow market definitions. 
      • Advocate/North Shore and Hershey
      • Merger of an urban provider with one or more rural providers who provide the same services
      • Merger of two urban providers who provide competing services but are in different geographic markets
  • What do and how to be prepared
    • Without specific case studies in this developing and quickly evlovling area of antitrust, knowledge is power
    • Legal theory-understand and pay close attention to product or geographic market definition
    • Economic theory-understand whether the relevant economic analysis is on demand side or price side.  Be wary of, or at least understand, the economic forces at work

SEGMENT 2:
Dr. Paul Wong, Consultant
NERA Economic Consulting
  • Survey of the economic literature: “A price effect…but what is the mechanism?”
    • Lewis and Pflum 2014; Lewis and Pflum 2015; Dafny, Ho and Lee 2016
    • Literature has found a significant price effect but has limited theory to explain the results
  • Mechanisms of action: “Do antitrust issues drive the results in the literature?”
    • Benign reasons: econometric problems, quality, failing firms, complex contracts
    • Antitrust concerns: extension of existing market power (tying), creation of new market power (“common customers”)
  • Diagnosing antitrust concerns:
    • Local tests for market power
    • Tests for overlap across markets (common customers and common insurers)
    • Historical analogs

cross-market mergers CLE

cross-market mergers CLE

L. Pahl ZinnMemberDickinson Wright PLLC

Named one of the Best Lawyers in America® 2012-present for his work in antitrust law, Pahl Zinn is a graduate of Colgate University (B.A., History, 1991); he received his law degree magna cum laude from Syracuse University (J.D., 1997), where he was a member of the Order of the Coif.  He was a clerk in the Michigan Court of Appeals pre-hearing division from 1997 to 1998, and joined Dickinson Wright’s Detroit office in 2000.  His areas of practice include antitrust and trade regulation litigation/counseling; business crimes and fraud loss recovery; class action litigation; commercial and business litigation; franchise, distribution and dealer litigation/counseling; and intellectual property litigation.  Since 1997 he has been a member of the State Bar of Michigan and is also a member of the Antitrust Section of the American Bar Association.  From 2012-2014, he served as Chair of the State Bar of Michigan’s Antitrust, Franchising and Trade Regulation Section.

Pahl remains active in the community.  In addition to his service with the State Bar of Michigan, Pahl has served on the Vestry of Christ Church Grosse Pointe (2000-2003); on the Board of Grosse Pointe Hockey Association (2008-2012); and on the ULS Alumni Board of Governors, where he recently stepped-down as President after serving on the Board since 2009.  

cross-market mergers CLE

Dr. Paul WongConsultantNERA Economic Consulting

Dr. Paul Wong is part of NERA’s Healthcare and Antitrust practices.  In his work at NERA, Dr. Wong has consulted on a variety of mergers and antitrust litigations in healthcare industries, including hospitals, health insurance, multispecialty physician groups, medical devices, and medical supply distribution.  Prior to joining NERA, Dr. Wong received his Ph.D. from Stanford University and worked at the Palo Alto Medical Foundation Research Institute (part of Sutter Health).  Dr. Wong has presented his research for a number of different organizations, including the US Department of Justice and the American Society of Health Economists.

cross-market mergers CLE

Course Level:
   Intermediate

Advance Preparation:
   Print and review course materials

Method Of Presentation:
   On-demand Webcast

Prerequisite:
   NONE

Course Code:
   145551

NASBA Field of Study:
   Business Law

NY Category of CLE Credit:
   Areas of Professional Practice

Total Credits:
    2.0 CLE

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About the Knowledge Group

The Knowledge Group

The Knowledge Group has been a leading global provider of Continuing Education (CLE, CPE) for over 13 Years. We produce over 450 LIVE webcasts annually and have a catalog of over 4,000 on-demand courses.

About the Knowledge Group

The Knowledge Group

The Knowledge Group has been a leading global provider of Continuing Education (CLE, CPE) for over 13 Years. We produce over 450 LIVE webcasts annually and have a catalog of over 4,000 on-demand courses.

Dickinson Wright PLLC is a general practice business law firm with more than 400 attorneys among more than 40 practice areas. Headquartered in Detroit and founded in 1878, the firm has fifteen offices, including six in Michigan (Detroit, Troy, Ann Arbor, Lansing, Grand Rapids, and Saginaw) and eight other domestic offices in Columbus, Ohio; Lexington, Ky.; Nashville, Tenn. (2); Las Vegas, Nev.; Phoenix, Ariz.; Reno, Nev.; and Washington, D.C. The firm’s Canada office is located in Toronto.

The firm offers clients a distinctive combination of superb client service and exceptional quality. Dickinson Wright lawyers are known for delivering commercially-oriented advice on sophisticated transactions and have a remarkable record of wins in high-stakes litigation. Dickinson Wright lawyers are regularly cited by Chambers, Best Lawyers, Super Lawyers, and other leading independent law firm evaluating organizations.

Website: https://www.dickinson-wright.com/

NERA Economic Consulting (www.nera.com) is a global firm of experts dedicated to applying economic, finance, and quantitative principles to complex business and legal challenges. For half a century, NERA’s economists have been creating strategies, studies, reports, expert testimony, and policy recommendations for government authorities and the world’s leading law firms and corporations. With its main office in New York City, NERA serves clients from more than 25 offices across North America, Europe, and Asia Pacific.

Website: https://www.nera.com/

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