Antitrust Enforcement in the Medical Services Industry: What Does It All Mean?

This paper describes and attempts to explain the recent movement to enforce the antitrust laws in the health care sector of the economy. Few would doubt that this movement has important implications, particularly for the medical profession, but not many could be very precise in stating what those implications are. Attempts by physicians, and by the publications they read, to discuss the antitrust effort have been lacking in perception though not in dire predictions (Avellone and Moore, 1978; Paxton, 1979; Relman, 1978). Many nonphysician observers, even though not particularly sympathetic to physicians ’ views on the various questions that have been raised by antitrust initiatives, have nevertheless been puzzled by the choice of issues and by some of the arguments advanced. They have been particularly struck by certain inconsistencies between the apparent objectives of the antitrust authorities and the premises of the current or emerging health policies administered by the Department of Health, Education, and Welfare. On the whole, outside observers have not yet been impressed by what they have seen in the antitrust effort in the health services industry.