December 11, 2014

When competing health care providers affiliate by contract, rather than by merger or acquisition, they often face the challenge of structuring their joint activities to avoid liability under § 1 of the Sherman Act, which prohibits contracts that unreasonably restrain trade. A recent court decision, The Medical Center at Elizabeth Place LLC v. Midamerica Health Systems Corporation, provides guidance on how providers can structure their joint venture to create a single entity rather than an ongoing conspiracy under § 1.

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