This Memorandum analyzes the FTC's advisory opinion about MedSouth, Inc.'s proposed clinical integration program. The FTC concluded that MedSouth's proposed program should not be accorded per se treatment under the antitrust laws and has the potential to produce efficiencies in the firm of higher quality or reduced costs for patient services rendered by network physicians. This opinion provides the most detailed insight into the antitrust agencies' thinking regarding clinical integration since the discussions in the Federal Healthcare Antitrust Guidelines. This Memorandum describes MedSouth, MedSouth's proposed clinical integration program, and provides a detailed analysis of the FTC's opinion.