An economic and antitrust analysis of the distribution of medical products

The techniques used to distribute medical products are designed to maximize the manufacturers' profits by charging a relatively low price to hospitals and a relatively high price to other purchasers, such as doctors and nursing homes. This pricing scheme raises complex antitrust problems, including vertical price fixing between the manufacturer and its distributors, price discrimination by the manufacturer, and agreements between the manufacturer and the hospitals restricting the hospitals' ability to resell. This Article examines these antitrust issues.