The Department of Justice is tasked with investigating proposed mergers for potential violations of the Sherman and Clayton Antitrust Actsactivities that could potentially harm consumers by restraining competition and restraining trade. On the docket at the moment is the proposed merger of two privately held "chains" of outpatient surgical facilities (also known as "surgicenters") owned by physicians.

In the metropolitan Philadelphia area, there are a total of 1100 outpatient beds. The table below lists the eight largest providers of outpatient surgical services in the region. (The two firms proposing to merge are highlighted):

Company Name

Owner

# Outpatient Surgery Beds

PaddyHealth SurgiCenters

Mantis Toboggan, MD

342

Sheinhardt Universal Surgery Centers

Leo Spaceman, MD

211

Penn Medicine

University of Pennsylvania

96

Health East Surgery Centers

Publicly Owned

22

Surgical Partners

Surgical Partners LLC

16

Comprehensive Surgery Institute

PA Surgical Group, Inc.

16

Hibbert Medical Organization, d.b.a. "Hibbert Health"

Julius Hibbert, MD

12

Springfield Ambulatory Surgery Centers

Publicly Owned

10

a. Calculate the HHI Index Value (0-10,000)

b. Calculate the Four-Firm Concentration Ratio

c. Calculate the new HHI/Four-Firm values if PaddyHealth and Sheinhardt were allowed to merge.