When Competition Isn't Enough: Rural Health in Southwest Virginia (A)

14 Pages Posted: 16 Sep 2019

See all articles by G. Paul Matherne

G. Paul Matherne

University of Virginia - Darden School of Business

Rebecca Goldberg

University of Virginia - Darden School of Business

Peggy Bermel

University of Virginia - Darden School of Business

Brennan Fox

University of Virginia - Darden School of Business

Kevin Minogue

University of Virginia - Darden School of Business

Ryan Oberleitner

University of Virginia - Darden School of Business

Charlie Punches

University of Virginia - Darden School of Business

Caroline Rose

University of Virginia - Darden School of Business

Abstract

Mark Seidman at the Federal Trade Commission is evaluating a proposed merger between two health care entities and competing market leaders in southwest Virginia. The rural region is characterized by poverty, unemployment, and poor population health indicators relative to the rest of the state. The merger would form a virtual monopoly, normally prohibited by federal consumer protection laws, but the two companies assert that it would allow them to remain profitable and to continue to offer health care services in the region.In the B case, Marissa Levine, the Virginia Commissioner of Health, considers reports for and against the merger as she decides whether to issue a waiver to allow it. The optional C case describes the consequences of these decisions. The case set includes excerpts from public filings, which provide rich insight into the reasoning behind each entity's opinion.This case set explores the differences in and conflicts among the interests of for-profit health care systems, of rural, low-income residents, and of federal, state, and local governments. It allows students to engage in an in-depth discussion of the sometimes emotional issue of rural healthcare. It is suitable for students in a classes spanning health care management, nonprofit management, public policy, governance, ethics, and the social sector.

Excerpt

UVA-S-0314

Sept. 6, 2019

When Competition Isn't Enough: Rural Health in Southwest Virginia (A)

We are proud…we don't want handouts…but we want to be able to take care of ourselves.

—Gilda Mountcastle, 54, Lee County

Should a Monopoly Be Acceptable in Health Care?

. . .

Keywords: Health care, antitrust, monopoly, mergers and acquisitions, M&A, population health, leadership in health care, health systems, regional health, leadership, governance, regulated industries, regulation, business and society, business and government, privatization of healthcare, privatization, grassroots, FTC, Federal Trade Commission, stakeholder theory, stakeholder analysis, positions and interests, rural health care, health care management, nonprofit management, public policy, governance, ethics, social sector

Suggested Citation

Matherne, G. Paul and Goldberg, Rebecca and Bermel, Peggy and Fox, Brennan and Minogue, Kevin and Oberleitner, Ryan and Punches, Charlie and Rose, Caroline, When Competition Isn't Enough: Rural Health in Southwest Virginia (A). Darden Case No. UVA-S-0314. Available at SSRN: https://ssrn.com/abstract=3453530

G. Paul Matherne (Contact Author)

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Rebecca Goldberg

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Peggy Bermel

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Brennan Fox

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Kevin Minogue

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Ryan Oberleitner

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Charlie Punches

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Caroline Rose

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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