St. Luke's Health Systems, Ltd., operated an emergency clinic in Nampa, Idaho. Saltzer Medical Group, P.A., had
Question:
St. Luke's Health Systems, Ltd., operated an emergency clinic in Nampa, Idaho. Saltzer Medical Group, P.A., had thirty-four physicians practicing at its offices in Nampa. Saint Alphonsus Medical Center operated the only hospital in Nampa. St. Luke's acquired Saltzer's assets and entered into a five-year professional service agreement with the Saltzer physicians. This affiliation resulted in a combined share of two-thirds of the Nampa adult primary care provider market. Together, the two entities could impose a significant increase in the prices charged to patients and insurers, and correspondence between the parties indicated that they would. Saint Alphonsus -led a suit against St. Luke's to block the merger. Did this affiliation violate antitrust law? Explain.
Step by Step Answer:
The Legal Environment of Business Text and Cases
ISBN: 978-1305967304
10th edition
Authors: Frank B. Cross, Roger LeRoy Miller