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U.S. Department of Justice SealDEPARTMENT OF JUSTICE U.S. Federal Trade Commission SealFEDERAL TRADE COMMISSION


Improving Health Care:
A Dose of Competition

Photos: Healthcare Providers, Patient, Operating Room and X-ray

A Report by
the Federal Trade Commission
and the Department of Justice

July 2004


TABLE OF CONTENTS


Executive Summary

Chapter 1.Overview / Background
 
Chapter 2.Industry Snapshot and Competition Law: Physicians
 
Chapter 3.Industry Snapshot: Hospitals
 
Chapter 4.Competition Law: Hospitals
 
Chapter 5.Industry Snapshot: Insurance and Other Third Party Payment Programs
 
Chapter 6.Competition Law: Insurers
 
Chapter 7.Industry Snapshot and Competition Law: Pharmaceuticals
 
Chapter 8.Miscellaneous Subjects
 
APPENDIX AHEARINGS AND WORKSHOP PARTICIPANTS
 
APPENDIX BPUBLIC COMMENTS
 
APPENDIX CGLOSSARY OF HEALTH CARE TERMS AND ACRONYMS
 
APPENDIX DSELECTED FEDERAL STATUTES


Federal Trade Commission


TIMOTHY J. MURIS Chairman
MOZELLE W. THOMPSONCommissioner
ORSON SWINDLECommissioner
THOMAS B. LEARY Commissioner
PAMELA JONES HARBOUR Commissioner
 
Susan A. Creighton Director, Bureau of Competition
J. Howard Beales, III Director, Bureau of Consumer Protection
Luke Froeb Director, Bureau of Economics
William E. Kovacic General Counsel
Rosemarie Straight Executive Director
Anna H. Davis Director, Office of Congressional Relations

Report Drafters:
David A. Hyman, Special Counsel and Professor of Law and Medicine, University of Illinois
Sarah M. Mathias, Office of General Counsel for Policy Studies
Patricia Schultheiss, Bureau of Competition
Matthew Bye, Office of General Counsel for Policy Studies
Cecile T. Kohrs, Office of General Counsel for Policy Studies
Gail Levine, Deputy Assistant General Counsel for Policy Studies
Michael Wroblewski, Assistant General Counsel for Policy Studies
Susan DeSanti, Deputy General Counsel for Policy Studies
Nicole Gorham, Office of General Counsel for Policy Studies
Natalie Shonka, Office of General Counsel for Policy Studies

Report Contributors:
Alden F. Abbott, Assistant Director, Bureau of Competition
Jeffrey Brennan, Assistant Director, Bureau of Competition
J. Elizabeth Callison, Bureau of Economics
Michael Cowie, formerly Assistant Director, Bureau of Competition
Philip Eisenstat, Deputy Assistant Director, Bureau of Competition
Mark Frankena, Deputy Director for Antitrust, Bureau of Economics
Elizabeth R. Hilder, Bureau of Competition
Thomas Krattenmaker, Bureau of Competition
Judith M. Moreland, Bureau of Competition
David Narrow, Bureau of Competition
Thomas Pahl, Bureau of Consumer Protection
Paul A. Pautler, Deputy Director for Consumer Protection, Bureau of Economics
Lee Peeler, Deputy Director, Bureau of Consumer Protection
Michael Vita, Assistant Director, Bureau of Economics
Oscar Voss, Bureau of Competition
John Wiegand, Bureau of Competition

Inquiries concerning this report should be directed to:
Sarah Mathias (202) 326-3254 or smathias@ftc.gov (Office of General Counsel, Policy Studies)


Antitrust Division
U.S. Department of Justice


R. HEWITT PATE Assistant Attorney General
 
Thomas O. Barnett Deputy Assistant Attorney General for Civil Enforcement
Makan Delrahim Deputy Assistant Attorney General for International, Policy, and Appellate Matters
James M. Griffin Deputy Assistant Attorney General for Criminal Enforcement
David A. Higbee Chief of Staff and Deputy Assistant Attorney General
J. Bruce McDonald Deputy Assistant Attorney General for Regulatory Matters
David S. Sibley Deputy Assistant Attorney General for Economic Analysis
Scott D. Hammond Director of Criminal Enforcement
J. Robert Kramer II Director of Operations
Kenneth Heyer Economic Director of Enforcement
Dorothy B. Fountain Deputy Director of Operations

Report Contributors
Mark J. Botti, Chief, Litigation I Section
Robert A. Potter, Chief, Legal Policy Section
Elizabeth J. Armington, Assistant Chief, Economic Litigation Section
Edward D. Eliasberg, Jr., Attorney, Legal Policy Section
Leslie C. Overton, Counsel to the Assistant Attorney General
David C. Kelly, Attorney, Litigation I Section
Michael S. Spector, Attorney, Litigation I Section
Julia Knoblauch, Paralegal, Litigation I Section
William E. Berlin, formerly Attorney, Litigation I Section
Deborah A. Healy, Economist, Economic Litigation Section
Kenneth Danger, formerly Economist, Competition Policy Section
Jon B. Jacobs, Attorney, Litigation I Section
Steven B. Kramer, Attorney, Litigation I Section
Richard S. Martin, Attorney, Litigation I Section
Belinda A. Barnett, Senior Counsel to the Deputy Assistant Attorney General for Criminal Enforcement

Inquiries concerning this report should be directed to:

Mark J. Botti, Chief, Litigation I Section
(202) 307-0001 or Mark.Botti@usdoj.gov


Acknowledgments:

The Agencies wish to note the expertise and time contributed by Hearings participants. For all of their contributions, the Agencies convey their thanks.

The Agencies appreciate the willingness of agencies and individuals to review this report in advance of publication. The Agencies thank the following agencies and individuals for their review of this report: the Department of Health & Human Services (Agency for Healthcare Research and Quality; Centers for Medicare & Medicaid Services; and the Offices of the Assistant Secretary for Planning & Evaluation and the General Counsel); Department of Commerce; Department of Labor; Office of Management and Budget; the National Economic Council; William S. Brewbaker, III, University of Alabama; H.E. Frech, III, University of California, Santa Barbara; Paul B. Ginsburg, Center for Studying Health System Change; Michael A. Morrisey, University of Alabama; and William M. Sage, Columbia University.

Cover:

Cover graphics obtained under license from Dynamic Graphics, Inc.


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Department of Justice
Antitrust Division
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Federal Trade Commission
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