Bilateral monopoly litigation, Pittsburgh edition

What happens when an unstoppable force meets the immovable object? The Governor threatens to pass a law.

Duopoly Bilateral monopoly litigation between the largest health system and the largest insurer in western Pennsylvania is turning into a nasty battle.  An update from KHN:

Last week during a speech at the Pennsylvania Press Club in Harrisburg, Gov. Tom Corbett said he’s “deeply” concerned.

“In my mind, they are both charities and they are both nonprofits and something is getting lost in between,” he said. “And I will work with the Legislature, if necessary, to address this.”

The real story here is that Highmark tried to inject some competition into the Pittsburgh market for health care services. Usually the duopolists bilateral monopolists get along just fine, to the detriment of consumers.

For a round up on most pending major health care antitrust litigation, including this case, see my TIE post from June.

h/t to Brad F. for the KHN pointer

UPDATE:  Austin points out that I really meant bilateral monopoly

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