Congress established the first antitrust law, the Sherman Act, in 1890. The passing of this law acted as a “comprehensive charter of economic liberty intended to preserve free and unrestricted competition as the rule of trade.” The Clayton Act and the Federal Trade Commission Act, which established the FTC, were two more antitrust legislation passed by Congress in 1914. These are the three main federal antitrust statutes that are still in force today, with minor modifications. Additionally, healthcare providers can learn the fundamentals of antitrust laws by taking the Understanding and Navigating Antitrust Laws in Healthcare course.
What You Will Learn:
- The history and evolution of antitrust laws in the healthcare sector
- The key regulatory bodies that oversee antitrust regulations in healthcare
- Key antitrust laws, such as the Sherman Act, Clayton Act, and FTC Act
- Various antitrust issues, including price fixing and monopolization
- The legal, financial, and reputational repercussions of antitrust violations
- The impact of antitrust issues on consumers, competitors, and the market
Details
Course length: 1 hour. CME: 1
Languages: American English
Key features: Audio narration, learning activity, and post-assessment.
American Medical Compliance is accredited by the Accreditation Council for Continuing Medical Education (ACCME) to provide continuing medical education to physicians. Our Continuing Medical Education (CME) program is committed to enhancing the knowledge, skills, and professional performance of healthcare providers to improve patient care outcomes. Through high-quality educational activities, we aim to address the identified educational gaps and to support the continuous professional development of our medical community. American Medical Compliance designates this activity for a maximum of 1 AMA PRA Category 1 Credits. Physicians should only claim this credit for their complete participation in this activity.
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The Sherman Act
The Sherman Act criminalizes “every contract, combination, or conspiracy in restraint of trade,” along with “monopolization, attempted monopolization, or conspiracy or combination to monopolize.” The Supreme Court ruled a long time ago that only unjustifiable trade restraints are prohibited by the Sherman Act.
The Federal Commission Trade Act
The Federal Trade Commission Act prohibits “unfair methods of competition” and “unfair or deceptive acts or practices.” Additionally, the FTC Act is likewise violated by all violations of the Sherman Act, according to the Supreme Court. Moreover, the FTC can therefore file lawsuits under the FTC Act against the same kinds of actions that violate the Sherman Act even if it ostensibly does not enforce the Sherman Act.
The Clayton Act
On the other hand, the Sherman Act fails to explicitly prohibit some actions. These include mergers and interlocking directorates (i.e., the same individual making business decisions for rival companies). As a result, the Clayton Act covers these specific practices. According to Section 7 of the Clayton Act, mergers and acquisitions are prohibited where they “may be substantially to lessen competition, or to tend to create a monopoly.” The Robinson-Patman Act of 1936 modified the Clayton Act to outlaw several discriminatory prices, services, and concessions in business transactions.
Antitrust Issues in Healthcare
In healthcare there are a variety of antitrust issues that call for the laws listed above in order to keep healthcare providers protected. These include price fixing, group boycotts, and monopolization. With the help of the information provided in this course, you can keep your practice safe from these potential issues.
