Gaynor Comments on FTC Case
The Federal Trade Commission is seeking to overturn a takeover of a suburban Chicago Hospital by Evanston Northwestern Healthcare Corporation. According to the Wall Street Journal on Monday, January 17, 2005, the FTC says the takeover is an antitrust violation and Evanston is imposing huge price increases on insurers and employers.
In the WSJ article, Professor Gaynor states "When hospitals are nonprofit, members of the community and judges as well tend to think of them as institutions with a strong humanitarian bent. But there firms aren't existing on philanthropy. They live and die on sales revenue, and will exercise market power if they have the opportunity."
Professor Gaynor's research focuses on competition in health care markets and on the role of incentive structures within health care. He has testified at the FTC/Department of Justice Joint Hearings on "Countervailing Power in Health Care" and is a recent recipient of the National Institute for Health Care Management Research and Educational Foundation (NIHCM Foundation) Health Care Research Award.
Full article: "FTC Targets Hospital Merger in Antitirust Case" Wall Street Journal January 17, 2005, content available online to registered users.