Antitrust law implications of exclusive contracts, closed staffs, and denials of hospital privileges

Reports of an impending surplus of physicians have intensified economic incentives to exclude competing professionals from the hospital workplace. These conditions have led to a substantial increase in the number of private lawsuits instituted by the excluded physicians. Denials of hospital privileges can be essential to the maintenance of high standards of quality and efficiency at a hospital. However, unreasonable denials of staff privileges, staff closures, and exclusive contracts can raise antitrust implications depending on the facts. The relevant factual and economic questions that should be asked about such conduct in order to determine the degree of antitrust risk are discussed.