Navigating Antitrust Risks in Senior Living Pricing Strategies
As senior living and nursing home operators harness third-party revenue management software, awareness of antitrust risks is essential. Recent cases spotlight how data-sharing among competitors can lead to unintended legal implications.
Key Takeaways:
- Duffy v. Yardi illustrates allegations of nonpublic data use leading to coordinated pricing outcomes.
- Courts are drawing lines on algorithmic pricing strategies; be aware of:
- Nonpublic competitor inputs
- Vendor-facilitated signaling
- Adherence to common pricing outputs
Practical Steps to Mitigate Risk:
- Ban Nonpublic Inputs: Contractually restrict vendor access to sensitive data.
- Human Oversight: Treat software outputs as recommendations, ensuring a human touch in pricing decisions.
- Disable Cross-Client Signaling: Prevent features that reveal competitive pricing.
- Time-Delay Data: Use aggregated data with lags to minimize immediate market input.
- Antitrust Review: Regularly audit vendor contracts and governance policies.
Algorithims can be powerful, but transparency and caution are key! Explore these strategies to safeguard your facility’s pricing integrity. Share this with industry peers, and let’s foster a compliant marketplace!
