Are you violating antitrust laws?

Abstract

A hospital enters into an exclusive contract for staffing of its emergency room. Physicians band together into a managed care organization. Another hospital enters into an exclusive contract for anesthesiology services. Yet another agrees to refer patients exclusively to a vendor of durable medical equipment. These and similar arrangements, increasingly common in the health care industry, have one thing in common: They have been challenged repeatedly as antitrust violations. The providers have won some of these lawsuits and lost others. Short of avoiding all exclusive contracts, how can you avoid such a lawsuit, or at least improve your chance of winning it? This article outlines the antitrust principles that apply to exclusive contracts and joint ventures between health care providers. Its purpose is to alert you to situations that may implicate the antitrust laws. Because antitrust law is complex and turns on the specific facts of each situation, you should consult with your legal counsel whenever antitrust questions arise.