The limited relevance of patient migration data in market delineation for hospital merger cases.
A model is presented in which hospitals and patients exist at two points and in which a significant number of patients migrate from one point to the other because of perceived quality differences. Applying a market delineation test based on patient migration, such as the Elzinga-Hogarty test, this migration would lead to the conclusion that the relevant market for purposes of antitrust analysis includes both points. This conclusion is shown to be incorrect because a monopolist at the higher quality point generally would raise price significantly.
D002391:Catchment Area, Health / Q000191:economics*; D003625:Data Collection; D004465:Economic Competition / Q000331:legislation & jurisprudence; D006268:Health Facilities / Q000331:legislation & jurisprudence*; D006273:Health Facility Merger / Q000331:legislation & jurisprudence*; D006764:Hospitals, Community / Q000706:statistics & numerical data*; D007087:Illinois; D015233:Models, Statistical; D010342:Patient Acceptance of Health Care; D011157:Population Dynamics; D013223:Statistics as Topic; D014195:Travel; D014481:United States; D014485:United States Federal Trade Commission; D014768:Virginia