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The Effects of Physician and Hospital Integration on Medicare Beneficiaries' Health Outcomes

Author

Listed:
  • Thomas G. Koch

    (Federal Trade Commission)

  • Brett W. Wendling

    (Federal Trade Commission)

  • Nathan E. Wilson

    (Federal Trade Commission)

Abstract

We consider whether hospital acquisitions of physicians lead to improved clinical outcomes for Medicare patients aged 65 and older. The analysis combines 2005–2012 Medicare fee-for-service and enrollment data with merger and physician affiliation information from the Levin Reports and SK&A, respectively. We determine the effect of acquisitions on several health outcomes: mortality, acute myocardial infarctions, acute circulatory conditions, ischemic heart disease, glaucoma, symptomatic diabetes complications, and asymptomatic diabetes complications. These outcomes represent the progression of hypertension and diabetes into worse health states. Our results indicate that hospital acquisitions of existing physician practices have little effect on the health outcomes we consider.

Suggested Citation

  • Thomas G. Koch & Brett W. Wendling & Nathan E. Wilson, 2021. "The Effects of Physician and Hospital Integration on Medicare Beneficiaries' Health Outcomes," The Review of Economics and Statistics, MIT Press, vol. 103(4), pages 725-739, October.
    • Handle: RePEc:tpr:restat:v:103:y:2021:i:4:p:725-739
    DOI: 10.1162/rest_a_00924
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    Cited by:

    1. Leila Agha & Keith Marzilli Ericson & Xiaoxi Zhao, 2020. "The Impact of Organizational Boundaries on Healthcare Coordination and Utilization," NBER Working Papers 28179, National Bureau of Economic Research, Inc.
    2. Richards-Shubik, Seth & Roberts, Mark S. & Donohue, Julie M., 2022. "Measuring quality effects in equilibrium," Journal of Health Economics, Elsevier, vol. 83(C).
    3. Francine Lafontaine & Margaret E. Slade, 2021. "Presumptions in Vertical Mergers: The Role of Evidence," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 59(2), pages 255-272, September.
    4. Indranil R. Bardhan & Chenzhang Bao & Sezgin Ayabakan, 2023. "Value Implications of Sourcing Electronic Health Records: The Role of Physician Practice Integration," Information Systems Research, INFORMS, vol. 34(3), pages 1169-1190, September.

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