16 Jun Question A Sherman Antitrust Act Applic
Question
A Sherman Antitrust Act Application Question
State Capital, in the state of Anywhere, has three hospitals. You are the Chief Operating Officer of Best Medical Center, which is affiliated with the state’s tertiary care center and teaching hospital 60 miles away. Although not the largest hospital in State Capital, it does offer a variety of specialty and boutique services and clinics. One of its clinics specializes in cardiac rehabilitation and offers a broad range of services to patients with cardiovascular disease. The other two hospitals also offer cardiac rehabilitation, although their services are not as sophisticated and not centrally coordinated. Two years ago Best Medical Center entered into an exclusive contract with a cardiology practice in State Capital. Recently, a new cardiologist Dr. Will moved into the area and applied for medical staff privileges at your facility, which were denied based on the exclusive contract with the cardiology practice. Dr. Will has threatened to sue on the grounds that the denial of privileges is a violation of Sections 1 and/or 2 of the Sherman Antitrust Act. Will Dr. Will succeed in such a lawsuit? Explain the reasoning behind your assessment.
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