Abstract

http://ssrn.com/abstract=1898746
 


 



A Comparison of Screening Mechanisms for Identifying Potentially Anticompetitive Accountable Care Organizations


Gregory J. Pelnar


Compass Lexecon

July 29, 2011


Abstract:     
The FTC and DOJ’s Proposed Statement of Antitrust Enforcement Policy Regarding Accountable Care Organizations Participating in the Medicare Shared Savings Program explains how the antitrust agencies will screen accountable care organizations (ACOs) to identify ones that are potentially anticompetitive and therefore require further review. In contrast to the antitrust screens the agencies have set forth in earlier Statements or Guidelines which are based on market shares in relevant markets, the Proposed Statement introduces a screen based on market shares in Primary Service Areas (PSAs). By examining several numerical examples, the proposed ACO screen is compared to some alternatives, including the review thresholds set forth in the 2010 Horizontal Merger Guidelines. The results indicate that the proposed ACO screen produces results qualitatively similar to other screens in some instances, but can be more stringent or more lax in others. It is therefore at best premature to conclude that PSAs are a useful tool for screening out potentially anticompetitive ACOs.

Number of Pages in PDF File: 15

Keywords: accountable care organizations, antitrust, primary service area

JEL Classification: I11, K21, L44

working papers series


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Date posted: July 30, 2011  

Suggested Citation

Pelnar, Gregory J., A Comparison of Screening Mechanisms for Identifying Potentially Anticompetitive Accountable Care Organizations (July 29, 2011). Available at SSRN: http://ssrn.com/abstract=1898746 or http://dx.doi.org/10.2139/ssrn.1898746

Contact Information

Gregory J. Pelnar (Contact Author)
Compass Lexecon ( email )
332 South Michigan Avenue
Suite 1300
Chicago, IL 60604
United States
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