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Licensed Unlicensed Requires Authentication Published by De Gruyter November 20, 2014

The Partners HealthCare Settlement and the Future of Health Care Organizations

  • Barak D. Richman and Kevin A. Schulman EMAIL logo
From the journal The Economists' Voice

Abstract

A recent settlement between Massachusetts and Partners HealthCare, along with successful antitrust actions by the Federal Trade Commission, may signal the beginning of the end of two decades of consolidation of health care providers. This consolidation has been associated with higher prices resulting from market power, justifying the antitrust actions. However, the appropriate remedy for the health sector is a unique challenge. The proposed settlement appears to lock into place the legacy of the hospital-based delivery model, rather than orchestrating a pathway to a new care delivery models. Clearly, we need a regulatory framework that will introduce innovative alternatives into the market, not enshrine the current costly paradigm.


Corresponding author: Kevin A. Schulman, MD, Duke Clinical Research Institute, Duke University, PO Box 17969, Durham, NC 27715, USA, Tel.: +919-668-8101, Fax: 919-668-7124, e-mail:
aBarak D. Richman is the Edgar P. and Elizabeth C. Bartlett Professor of Law and a Professor of Business Administration at Duke University.bKevin A. Schulman is a Professor of Medicine and the Gregory Mario and Jeremy Mario Professor of Business Administration at Duke University. He is also an Associate Director of the Duke Clinical Research Institute.
Published Online: 2014-11-20
Published in Print: 2014-11-1

©2014 by De Gruyter

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