Hospital Integration and Vertical Consolidation: An Analysis of Acquisitions in New York StateRobert S. Huckman
NBER Working Paper No. 11379 While prior studies tend to view hospital integration through the lens of horizontal consolidation, I provide an analysis of its vertical aspects. I examine the effect of hospital acquisitions in New York State on the distribution of market share for major cardiac procedures across providers in target markets. I find evidence of benefits to acquirers via business stealing, with the resulting redistribution of volume across providers having small effects, if any, on total welfare with respect to cardiac care. The results of this analysis--along with similar assessments for other services--can be incorporated into future studies of hospital consolidation. The NBER Bulletin on Aging and Health provides summaries of publications like this.
You can sign up to receive the NBER Bulletin on Aging and Health by email. Published: Huckman, Robert S. "Hospital Integration And Vertical Consolidation: An Analysis Of Acquisitions In New York State," Journal of Health Economics, 2006, v25(1,Jan), 58-80. This paper is available as PDF (231 K) or via email.
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