Question

Health Economics quiz

1. The Evanston North acquisition of Highland Park hospital was unusual because:
   1. The FTC opened its investigation after the merger was consummated.
   2. Evanston North alleged substantial efficiencies were only available to the merged firm.
   3. The FTC had actual evidence of post-merger pricing with which to assess the competitive effects of the merger.
   4. The attorneys for ENK hired economists to conduct empirical   analysis of geographic market definition.
2. Did the FTC win the first round at the ALJ in its litigation against ENH?
   1. Yes
   2. No
3. On appeal, ENH’s case was judged by the Commission.
   1. True
   2. False
4. The Commission voted to uphold the FTC case against ENH.
   1. True
   2. False
5. The FTC initially sought to have ENH divest Highland Park but later settled for a provision that EN and Glendale must negotiate with payors such as Blue Cross/Blue Shield independently.
   1. True
   2. False
6. Which was the most dispositive evidence that the merger was anticompetitive:
   1. Concentration in the antitrust market was made substantially more concentrated by the merger.
   2. EN documents referred to Highland Park’s imposition of price discipline on EN.
   3. Price data was analyzed by Commission economists that showed substantial post-merger price increases.
   4. Documentary evidence of collusion among the five hospitals remaining after merger.
7. Following the Commission’s win over the merger defendants private parties filed suit against ENH for damages from price fixing.
   1. True
   2. False
8. Not all hospital patients can afford to pay for their hospital care and, as well, hospitals are not allowed to turn emergency room patients down or divert them to other hospitals. Allegedly, hospitals make up the deficit through cost shifting.
   1. True
   2. False
9. Unlike regulated firms cost shifting by hospitals is essentially price discrimination.
   1. True
   2. False

Answer 1

SOLUTION :-

1. The Evanston North acquisition of Highland Park hospital was unusual because:

SOLUTION :-The FTC had actual evidence of post-merger pricing with which to assess the competitive effects of the merger.

2. Did the FTC win the first round at the ALJ in its litigation against ENH?

SOLUTION :- NO

3. On appeal, ENH’s case was judged by the Commission.

SOLUTION :-False

4. The Commission voted to uphold the FTC case against ENH.

SOLUTION :- True

5. The FTC initially sought to have ENH divest Highland Park but later settled for a provision that EN and Glendale must negotiate with payors such as Blue Cross/Blue Shield independently.

SOLUTION :-True

6. Which was the most dispositive evidence that the merger was anticompetitive:

SOLUTION :- Documentary evidence of collusion among the five hospitals remaining after merger.

7. Following the Commission’s win over the merger defendants private parties filed suit against ENH for damages from price fixing.

SOLUTION :-False

8. Not all hospital patients can afford to pay for their hospital care and, as well, hospitals are not allowed to turn emergency room patients down or divert them to other hospitals. Allegedly, hospitals make up the deficit through cost shifting.

SOLUTION :-True

9. Unlike regulated firms cost shifting by hospitals is essentially price discrimination.

SOLUTION :- False