Question

From The Law of Healthcare Administration 8th Edition (2012) by Showalter - Chapter 12

2. Define the rule of reason and describe when it is used.

3. In today’s economy, what are some examples of intrastate commerce? In other words, what business does not affect interstate commerce?

4. How would you define the geographic and product markets of large healthcare organizations such as Mayo Clinic, Cleveland Clinic, and Johns Hopkins? What are new competitors’ barriers to entry to those markets?

5. Why is a case like In the Matter of Evanston not likely to arise often in the future?

Answer 1

2. Define the rule of reason and describe when it is used.

            - Justice Brandeis statement summarizes the approach he took to antitrust cases and is the foundation of what has come to be known as rule-of-reason analysis a detailed, time-consuming examination of the issues, including the geographic and product markets involved. The rule of reason is applied in most Section 1 cases, but some behavior is so clearly anticompetitive that a full-scale analysis is considered unnecessary.

3. In today's economy, what are some examples of intrastate commerce? In other words, what business does not affect interstate commerce?

- For an example in today’s economy, you can order a supplies by mail, telephone, or Internet; can have them shipped from anywhere in the world by land, sea, or air; and can pay for them through PayPal or an electronic funds transfer from a bank in Chicago, New York, or anywhere else as long as it is in one state. Virtually every activity now affects or is affected by interstate commerce, and as a result congress may regulate even local activities if they have a substantial harmful effect on interstate commerce.

4. How would you define the geographic and product markets of large healthcare organizations such as the Mayo Clinic, Cleveland Clinic, Kaiser Permanente, and Johns Hopkins? What are the barriers that keep new competitors from entering those markets?

            - A large healthcare organization like Johns Hopkins geographic would make the appearance look friendly for everyone to notice what kind of quality the hospital has. Product markets would try to have sources for patients and family members if they need anything or by having nearby neighbor asking for help if they are out of stock. Barriers that keep new keeps new competitors from entering those markets are by keeping up with the generation of medical technicology.