NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Consolidation in the Medical Care Marketplace: A Case Study from Masschusetts

Jason R. Barro, David Cutler

NBER Working Paper No. 5957*
Issued in March 1997
NBER Program(s):   HC

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This paper examines consolidation in the Massachusetts hospital market. We find that consolidation is driven primarily by a large decline in the demand for hospital beds, resulting from increased enrollment in managed care and technological changes. The drive to consolidate appears through three primary forces: consolidation for closure; consolidation for economies of scale; and consolidation for network creation.

*Published: This paper was subsequently published as Consolidation in the Medical Care Marketplace,A Case Study from Massachusetts, Jason Barro, David M. Cutler, in NBER book Mergers and Productivity (2000)

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