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A Stronger Second Competitor? Analyzing the Competitive Effects of the Beth Israel-Lahey Transaction

BY | May 7, 2019

By Cory Capps, Kayuna Fukushima, Tetyana Shvydko & Zenon Zabinski The economic literature provides little guidance into the circumstances under which eliminating existing competitors while simultaneously creating a closer second competitor to a market leader will increase competition. This issue was recently analyzed by the Massachusetts Health Policy Commission (“HPC”) in its evaluation of a […]

By Cory Capps, Kayuna Fukushima, Tetyana Shvydko & Zenon Zabinski

The economic literature provides little guidance into the circumstances under which eliminating existing competitors while simultaneously creating a closer second competitor to a market leader will increase competition. This issue was recently analyzed by the Massachusetts Health Policy Commission (“HPC”) in its evaluation of a proposed merger of several local health systems to form the Beth Israel Lahey Health (“BILHâ€

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