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Antitrust in California

The cornerstone of health information is to share and exchange data among providers, health plans, and other entities, in order to raise quality and lower health care costs.  Doing so raises antitrust concerns about what is or is not permissible under federal antitrust laws.1  Antitrust law governs the sharing of information across integrated and nonintegrated entities, and whether such activities restrain trade.2

Notably, the state of California allows groups of health care providers, purchasing groups and payers to form contracts and act as a legitimate entity within the state’s health care market.  These entities are not subject to antitrust regulations that ban collusion in the marketplace.3


  • 1. Taylor Burke, Lara Cartwright-Smith, et al, The Antitrust Aspects of Health Information Sharing by Public and Private Health Insurers. Aligning Forces for Quality, July, 2009.
  • 2. Taylor Burke and Sara Rosenbaum, Accountable Care Organizations: Implications for Antitrust Policy.  BNA’s Health Law Reporter, Vol. 19, No. 10, March 11, 2010. 
  • 3. Health & Safety Code §1342.6


Antitrust in California

Subtopic Statute/Regulation Description
Health care entity exemption from state antitrust laws Health Care Coverage, Legislative Intent, and Antitrust Law – Cal. Health & Safety Code §1342.6 California allows the formation of contracts and groups of health care providers, purchasing groups and payers as a legitimate entity within the...