The table below shows annual admissions of general hospitals operating in Pinellas County. In addition to admissions, the table indicates the system (typically a corporate parent company) of which the hospital is a member. The table also shows the health service area (HSA) of each hospital. An HSA, which comes from the Dartmouth Atlas of Health Care, is a collection of zip codes within which most residents receive services from the hospitals in that area.

a1. Calculate the Herfindahl-Hirschman Index (HHI) for the Pinellas County hopsitals, treating each facility (i.e. hospital) as a separate organization (i.e. ignore system affiliation), and assuming the entire county is the relevant geographic market. What is the value of the HHI? (3 pts.)

a2. Based on this HHI, would antitrust authorities (i.e. the Justice Dept.) consider this hospital market competitive, mildly concentrated, or highly concentrated? Briefly explain. (2 pts.)

b1. Calculate HHI again, except combining the admissions of hospitals in the same system. What is the value of the HHI? (3 pts.)

(Note: For hospitals that are the sole representative of a system in the county or are not affiliated with a system, use the admissions of that hospital for the system admissions).

b2. Based on this HHI, would antitrust authorities consider the market competitive, mildly concentrated, or highly concentrated? Briefly explain. (2 pts.)

c1. Now, consider the hospitals in only the St. Petersburg HSA. Calculate HHI for just these hospitals, using the St. Petersburg HSA as the relevant geographic market and treating each hospital as a separate organization (as in a. above). What is the value of the HHI in this case? (3 pts.)

c2. Based on this HHI, would antitrust authorities consider the market (i.e. the St. Petersburg HSA) competitive, mildly concentrated, or highly concentrated? Briefly explain. (2 pts.)

Pinellas County General Hospitals: Hospital Name System Name Health Service Area (HSA) Annual Admissions ADVENTHEALTH NORTH PINELLAS ADVENTIST HEALTH SYSTEM SUNBELT HEALTHCARE CORPORA ] TARPON SPRINGS 4283 MORTON PLANT HOSPITAL BAYCARE HEALTH SYSTEMS CLEARWATER 29874 MEASE DUNEDIN HOSPITAL BAYCARE HEALTH SYSTEMS DUNEDIN 5811 MEASE COUNTRYSIDE HOSPITAL BAYCARE HEALTH SYSTEMS SAFETY HARBOR 22086 ST ANTHONY'S HOSPITAL BAYCARE HEALTH SYSTEMS SAINT PETERSBURG 24775 BAYFRONT HEALTH ST PETERSBURG COMMUNITY HEALTH SYSTEMS, INC. SAINT PETERSBURG 15307 PALMS OF PASADENA HOSPITAL HCA HEALTHCARE, INC. SAINT PETERSBURG 5944 ST PETERSBURG GENERAL HOSPITAL HCA HEALTHCARE, INC. SAINT PETERSBURG 6206 NORTHSIDE HOSPITAL HCA HEALTHCARE, INC. SAINT PETERSBURG 9597 LARGO MEDICAL CENTER HCA HEALTHCARE, INC. LARGO 19532 WINDMOOR HEALTHCARE OF CLEARWATER CLEARWATER 4218