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Price effects of Dutch hospital mergers, An ex post assessment of hip surgery

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  • Ron Kemp

    (Netherlands Competition Authority)

  • Astrid Severijnen

    (Netherlands Competition Authority)

Abstract

This study analyses price effects of two mergers in the Dutch healthcare industry. We investigate whether the merging hospitals raised their prices for hip surgery after the merger and, if so, how patients react to this higher price. For the Ziekenhuis Hilversum – Ziekenhuis Gooi-Noord merger, we found a statistically significant price increase for hip surgery, whereas for the Erasmus MC ziekenhuis – Havenziekenhuis Rotterdam merger, we did not find a significant price increase due to the merger. For both mergers, travel behaviour of patients prior and after the merger increased only slightly. As we studied only one treatment, hip surgery, we cannot draw conclusions on the overall price effect of the mergers.

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Bibliographic Info

Paper provided by Netherlands Competition Authority in its series NMa Working Papers with number 2.

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Length: 42 pages
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:nco:wpaper:1011

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  1. Aileen Thompson, 2011. "The Effect of Hospital Mergers on Inpatient Prices: A Case Study of the New Hanover-Cape Fear Transaction," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 18(1), pages 91-101.
  2. Gunnar Niels & Reinder Dijk, 2008. "Competition Policy: What are the Costs and Benefits of Measuring its Costs and Benefits?," De Economist, Springer, vol. 156(4), pages 349-364, December.
  3. Patrick Romano & David Balan, 2011. "A Retrospective Analysis of the Clinical Quality Effects of the Acquisition of Highland Park Hospital by Evanston Northwestern Healthcare," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 18(1), pages 45-64.
  4. Frederik T. Schut & Wynand P. M. M. Van de Ven, 2005. "Rationing and competition in the Dutch health-care system," Health Economics, John Wiley & Sons, Ltd., vol. 14(S1), pages S59-S74.
  5. Deborah Haas-Wilson & Christopher Garmon, 2011. "Hospital Mergers and Competitive Effects: Two Retrospective Analyses," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 18(1), pages 17-32.
  6. Henk Don & Ron Kemp & Jarig Sinderen, 2008. "Measuring the Economic Effects of Competition Law Enforcement," De Economist, Springer, vol. 156(4), pages 341-348, December.
  7. Halbersma, R.S. & Mikkers, M.C. & Motchenkova, E. & Seinen, I., 2007. "Market Structure and Hospital-Insurer Bargaining in the Netherlands," Discussion Paper 2007-006, Tilburg University, Tilburg Law and Economic Center.
  8. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-in-Differences Estimates?," The Quarterly Journal of Economics, MIT Press, vol. 119(1), pages 249-275, February.
  9. Steven Tenn, 2011. "The Price Effects of Hospital Mergers: A Case Study of the Sutter-Summit Transaction," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 18(1), pages 65-82.
  10. Varkevisser, Marco & Capps, Cory S. & Schut, Frederik T., 2008. "Defining hospital markets for antitrust enforcement: new approaches and their applicability to The Netherlands," Health Economics, Policy and Law, Cambridge University Press, vol. 3(01), pages 7-29, January.
  11. Krishnan, Ranjani, 2001. "Market restructuring and pricing in the hospital industry," Journal of Health Economics, Elsevier, vol. 20(2), pages 213-237, March.
  12. Ryan Mutter & Patrick Romano & Herbert Wong, 2011. "The Effects of US Hospital Consolidations on Hospital Quality," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 18(1), pages 109-126.
  13. Dranove, David & Shanley, Mark & White, William D, 1993. "Price and Concentration in Hospital Markets: The Switch from Patient-Driven to Payer-Driven Competition," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 179-204, April.
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Cited by:
  1. Martin Gaynor & Robert J. Town, 2011. "Competition in Health Care Markets," NBER Working Papers 17208, National Bureau of Economic Research, Inc.

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