Details

Autor(en) / Beteiligte

• Lewis, Matthew S.
• Pflum, Kevin E.

Titel

Hospital systems and bargaining power: evidence from out-of-market acquisitions

Ist Teil von

• The Rand journal of economics, 2017-10, Vol.48 (3), p.579-610

Ort / Verlag

Santa Monica: Wiley Subscription Services, Inc

Erscheinungsjahr

2017

Quelle

EBSCOhost Business Source Ultimate

Beschreibungen/Notizen

• Analyses of hospital mergers typically focus on acquisitions that alter local market concentration. However, as prices are negotiated between hospital systems and insurers, this focus may overlook the impact of cross-market interdependence in the bargaining outcome. Using data on out-of-market acquisitions occurring across the United States from 2000–2010, we investigate the impact of cross-market dependencies on negotiated prices. We find that prices at hospitals acquired by out-of-market systems increase by about 17% more than unacquired, stand-along hospitals and confirm that out-of-market mergers result in a relaxation of competition, the prices of nearby competitors to acquired hospitals increase by around 8%.