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

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.

(1242 K)

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Published: Consolidation in the Medical Care Marketplace,A Case Study from Massachusetts, Jason Barro, David M. Cutler, in Mergers and Productivity (2000), University of Chicago Press

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