Chapter 27, Problem 7BCP

Summary Introduction

Case summary: Company L operates an emergency clinic in Nampa. There is another company SMG, with thirty-four physicians working at their clinic.Company L entered into a five-year agreement with company SMG that was opposed by a center SAM, that operates the only hospital in Nampa. The allegation was that the two entities could charge high price from the patients and insurers. Center SAM filed a suit against company L to block the merger.

To find: Whether the agreement between L and SMG violated antitrust law.