The Impact of Hospital Consolidation: An Examination of Consolidating Hospitals and Their Rivals
Results from the multivariate analysis showed that for-profit hospitals had significantly higher costs and prices before consolidation and significantly lower costs and prices after consolidation. However, these post-consolidation price savings were mitigated by market concentration. Therefore, in highly concentrated markets, there was evidence that market power effects dominated efficiency effects. Conversely, rival hospital costs and prices changes in the third study did not vary significantly from match market hospitals.
University of Illinois - Urbana-Champaign
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University of Illinois at Urbana-Champaign