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Does Health Care Consolidation Harm Patients? Evidence from Maternity Ward Closures

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  • Daniel Avdic
  • Petter Lundborg
  • Johan Vikström

Abstract

We study how closures of maternity wards affect maternal and neonatal health. Using data on all hospital births in Sweden between 1990 and 2004, we compare changes in birth-related outcomes across hospital catchment areas that were differently exposed to ward closures. Our findings show that the closures increased maternal obstetric trauma but also decreased fetal stress and infant trauma among newborns. Adverse maternal outcomes are mainly driven by ward overcrowding, whereas increases in travel distance have no distinguishable effects. Positive effects on infant health reflect a shift of births from smaller to larger wards of higher quality.

Suggested Citation

  • Daniel Avdic & Petter Lundborg & Johan Vikström, 2024. "Does Health Care Consolidation Harm Patients? Evidence from Maternity Ward Closures," American Economic Journal: Economic Policy, American Economic Association, vol. 16(1), pages 160-189, February.
    • Handle: RePEc:aea:aejpol:v:16:y:2024:i:1:p:160-89
    DOI: 10.1257/pol.20200734
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    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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