To help fill this void, we conduct a retrospective study of a consummated hospital merger. In this transaction, Sutter, a network of nonprofit hospitals, acquired Summit, a nonprofit hospital located in Oakland, California. This combined Summit with Sutter’s Alta Bates hospital in Berkeley, California. The two hospitals were approximately 2.5 miles apart. The San Francisco Bay Area contained many other hospitals that offered a similar range of services, but which were located farther away. A central issue raised by the Sutter–Summit transaction was whether travel costs were low enough such that these hospitals were a sufficient constraint on the merging parties to prevent an anticompetitive price increase.