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The Industrial Organization of Health Care Markets

  • Martin Gaynor
  • Kate Ho
  • Robert Town

The US health care sector is large and growing - health care spending in 2011 amounted to $2.7 trillion and 18% of GDP. Approximately half of health care output is allocated via markets. In this paper, we analyze the industrial organization literature on health care markets focusing on the impact of competition on price, quality and treatment decisions for health care providers and health insurers. We conclude with a discussion of research opportunities for industrial organization economists, including opportunities created by the US Patient Protection and Affordable Care Act.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 19800.

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Date of creation: Jan 2014
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Publication status: published as Martin Gaynor & Kate Ho & Robert J. Town, 2015. "The Industrial Organization of Health-Care Markets," Journal of Economic Literature, American Economic Association, vol. 53(2), pages 235-84, June.
Handle: RePEc:nbr:nberwo:19800
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