The importance of technology in the consolidation of hospital markets. The case of the United States
Over the last years, technology has become a key element of competition in the hospital market. At the same time, this market in the US has experienced an enormous merger activity. In this study, we analyze the role that technology can play in this consolidation wave by focusing on how it can affect a hospital´s selection of a particular target. We analyze the selection of targets in mergers that took place in the US hospital market between 1985 and 2000. Our results show that technology is an important element for the competition in the hospital market and, as such, it plays a relevant role also in M&A strategies. We find that hospitals are more likely to choose targets that complement their technological holding, specifically when these are complex technologies and with favorable cost/benefits ratios. With this, the merged entity tends to become closer to a one-stop-shop hospital.
|Date of creation:||07 Mar 2012|
|Contact details of provider:|| Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN|
Web page: http://www.iese.edu/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin Gaynor & William B. Vogt, "undated".
"Antitrust and Competition in Health Care Markets,"
GSIA Working Papers
1999-E29, Carnegie Mellon University, Tepper School of Business.
- Mas, Núria & Seinfeld, Janice, 2008.
"Is managed care restraining the adoption of technology by hospitals?,"
Journal of Health Economics,
Elsevier, vol. 27(4), pages 1026-1045, July.
- Mas, Nuria & Seinfeld, Janice, 2004. "Is managed care restraining the adoption of technology by hospitals?," IESE Research Papers D/554, IESE Business School.
- Tay, Abigail, 2003. " Assessing Competition in Hospital Care Markets: The Importance of Accounting for Quality Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 34(4), pages 786-814, Winter.
- Michael L. Katz & Howard A. Shelanski, 2004.
"Merger Policy and Innovation: Must Enforcement Change to Account for Technological Change?,"
NBER Working Papers
10710, National Bureau of Economic Research, Inc.
- Michael L. Katz & Howard A. Shelanski, 2005. "Merger Policy and Innovation: Must Enforcement Change to Account for Technological Change?," NBER Chapters, in: Innovation Policy and the Economy, Volume 5, pages 109-165 National Bureau of Economic Research, Inc.
- Teresa D. Harrison, 2007. "Consolidations and closures: an empirical analysis of exits from the hospital industry," Health Economics, John Wiley & Sons, Ltd., vol. 16(5), pages 457-474.
- Robert S. Huckman & Gary P. Pisano, 2006. "The Firm Specificity of Individual Performance: Evidence from Cardiac Surgery," Management Science, INFORMS, vol. 52(4), pages 473-488, April.
- Robert S. Huckman, 2005.
"Hospital Integration and Vertical Consolidation: An Analysis of Acquisitions in New York State,"
NBER Working Papers
11379, National Bureau of Economic Research, Inc.
- Huckman, Robert S., 2006. "Hospital integration and vertical consolidation: An analysis of acquisitions in New York State," Journal of Health Economics, Elsevier, vol. 25(1), pages 58-80, January.
- Martin Gaynor & Robert J Town, 2012.
"Competition in Health Care Markets,"
The Centre for Market and Public Organisation
12/282, Department of Economics, University of Bristol, UK.
- Baker, Laurence C., 1997. "The effect of HMOs on fee-for-service health care expenditures: Evidence from Medicare," Journal of Health Economics, Elsevier, vol. 16(4), pages 453-481, August.
- Bronwyn H. Hall, 1988.
"The Effect of Takeover Activity on Corporate Research and Development,"
in: Corporate Takeovers: Causes and Consequences, pages 69-100
National Bureau of Economic Research, Inc.
- Bronwyn H. Hall, 1987. "The Effect of Takeover Activity on Corporate Research and Development," NBER Working Papers 2191, National Bureau of Economic Research, Inc.
- 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.
When requesting a correction, please mention this item's handle: RePEc:ebg:iesewp:d-0953. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Noelia Romero)
If references are entirely missing, you can add them using this form.