Q. Assume the following facts. ABC corporation currently provides home health se
ID: 137968 • Letter: Q
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Q. Assume the following facts. ABC corporation currently provides home health services in Treestump County but does not own or operate any nursing homes. XYZ corporation currently operates a nursing home in Treestump County but does not offer home health services. ABC and XYZ have agreed with each other that ABC will not try to enter the nursing home business and XYZ will not try to enter the home health business. In other words, ABC has agreed not to apply for any CON related to nursing home services in Treestump County and XYZ has agreed not to apply for any CON to provide home health services in Treestump County. Under these circumstances, which of the following statements is true? a) this agreement violates federal antitrust laws b) this agreement does not violate federal antitrust laws because the state CON agency could have made a decision that would have had the same practical effect c) this agreement does not violate federal antitrust laws, because those laws do not apply to members of a "learned profession" who provide healthcare servicesExplanation / Answer
C,this agreement does not violate federal antivirus laws,because those laws do not apply to members of a " learner profession" who provide health care services..
The fact that restraint operates upon profession of business, relevant in determining whether that particular restraint violates the Sherman Act( business competition).. it would be unrealistic to view the practice of professions as inter-changeable with other business activities and automatically to apply to the professions antitrust concepts which originated in other areas..
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