Health care joint ventures and competition law Essay

Health c are word ventures and competition law - Essay Example ace of the major problems in applying antitrust analysis to joint ventures in the health care industry, as in other industries, is the inherent problem of properly defining a joint venture. The classic and most-often cited definition states that a joint venture is an enterprise in which two or more separate firms or entities incorporate their operations such that the following conditions are met (1) the enterprise is under the joint control of parent entities, which are not under related control (2) each parent makes a substantial contribution to the joint enterprise (3) the joint enterprise exists as a business entity separate from the parent entities and (4) the enterprise creates or is intended to create a newfangled capability in terms of providing new productive capacity, new technology, a new product, or entry into a new market. The term joint venture do-nothing be applied to a wide range of collaborative activi ty. The Department of Justice, in its Guidelines for International Operations, has defined a joint venture as essentially any collaborative effort among firms, short of a merger, with respect to R&D, production, distribution and/or the marketing of products or services. In the health care industry, agreements amid hospitals and physicians to provide certain hospital-based services, such as anesthesiology, radiology, and pathology could be viewed as joint ventures.