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Abstract

This article analyzes the implications of the Clayton Antitrust Act (Clayton Act) and the Sherman Antitrust Act (Sherman Act) as they pertain to the Cleveland Clinic Health System (CCHS). Part One provides background analysis of these two statutes, and the application of those statutes to mergers in the health care industry. Part Two discusses the elements needed to prove the government's prima facie case. This consists of a discussion of a relevant market, which includes the product and geographic markets. This section also contains a description and analysis of market concentration, measured by the Herfindahl-HIrschman Index (HHI). Part Three provides further background information on the CCHS hospital affiliates, and discusses CCHS's recent acquisition activities. Part Four analyzes whether these recent activities amount to a violation of antitrust laws, warranting further investigation by the FTC. This section also provides a description and analysis of two possible defenses that CCHS may raise.

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