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The Impact of Hospital Mergers on Treatment Intensity and Health Outcomes: Working Paper 2011-05

Listed author(s):
  • Tamara Hayford
Registered author(s):

    Objective. To analyze the impact of hospital mergers on treatment intensity and health outcomes. Data. Hospital inpatient data from California for 1990 through 2006, encompassing forty mergers. Study Design. I used a geographic-based IV approach to determine the effect of a zip code’s exposure to a merger. The merged facility’s market share represents exposure, instrumented with combined pre-merge shares. Additional specifications include the Herfindahl index (HHI), instrumented with predicted change in HHI. Results. The primary specification results indicate that mergers increase the use of

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    File URL: https://www.cbo.gov/sites/default/files/112th-congress-2011-2012/workingpaper/10-06-2011-Hospital_Mergers_1.pdf
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    Paper provided by Congressional Budget Office in its series Working Papers with number 42753.

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    Date of creation: 31 Oct 2011
    Handle: RePEc:cbo:wpaper:42753
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    1. Capps, Cory & Dranove, David & Satterthwaite, Mark, 2003. " Competition and Market Power in Option Demand Markets," RAND Journal of Economics, The RAND Corporation, vol. 34(4), pages 737-763, Winter.
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    8. Ho, Vivian & Hamilton, Barton H., 2000. "Hospital mergers and acquisitions: does market consolidation harm patients?," Journal of Health Economics, Elsevier, vol. 19(5), pages 767-791, September.
    9. Leemore Dafny, 2009. "Estimation and Identification of Merger Effects: An Application to Hospital Mergers," Journal of Law and Economics, University of Chicago Press, vol. 52(3), pages 523-550, August.
    10. Martin Gaynor, "undated". "What Do We Know About Competition and Quality in Health Care Markets?," GSIA Working Papers 2006-E62, Carnegie Mellon University, Tepper School of Business.
    11. Daniel P. Kessler & Jeffrey J. Geppert, 2005. "The Effects of Competition on Variation in the Quality and Cost of Medical Care," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 14(3), pages 575-589, September.
    12. David M. Cutler & Mark McClellan & Joseph P. Newhouse, 2000. "How Does Managed Care Do It?," RAND Journal of Economics, The RAND Corporation, vol. 31(3), pages 526-548, Autumn.
    13. Dranove, David & Lindrooth, Richard, 2003. "Hospital consolidation and costs: another look at the evidence," Journal of Health Economics, Elsevier, vol. 22(6), pages 983-997, November.
    14. McClellan, Mark & Cutler, David & Newhous, Joseph P., 2000. "How Does Managed Care Do It?," Scholarly Articles 2643884, Harvard University Department of Economics.
    15. Leemore S. Dafny, 2005. "How Do Hospitals Respond to Price Changes?," American Economic Review, American Economic Association, vol. 95(5), pages 1525-1547, December.
    16. Martin Gaynor & Harald Seider & William B. Vogt, 2005. "The Volume–Outcome Effect, Scale Economies, and Learning-by-Doing," American Economic Review, American Economic Association, vol. 95(2), pages 243-247, May.
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