The anatomy of a hospital system merger: the patient did not respond well to treatment

Martin Gaynor, Adam Sacarny, Raffaella Sadun, Chad Syverson and Shruthi Venkatesh

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Despite the continuing US hospital merger wave, it remains unclear how mergers change, or fail to change, hospital behavior and performance. We open the "black box" of hospital practices through a mega-merger between two for-profit chains. Benchmarking the merger's effects against the acquirer's stated aims, we show they achieved some of their goals, harmonizing electronic medical records and sending managers to target hospitals. Post-acquisition managerial processes were similar across the merged chain. However, these interventions failed to drive detectable gains in performance. Our findings demonstrate the importance of organizations for merger research in health care and the economy more generally.

Keywords: management (search for similar items in EconPapers)
JEL-codes: I10 M12 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2022-04-07
New Economics Papers: this item is included in nep-com, nep-hea and nep-reg
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http://eprints.lse.ac.uk/117852/ Open access version. (application/pdf)

Related works:
Working Paper: The anatomy of a hospital system merger: the patient did not respond well to treatment (2022)
Working Paper: The anatomy of a hospital system merger: the patient did not respond well to treatment (2022)
Working Paper: The Anatomy of a Hospital System Merger: The Patient Did Not Respond Well to Treatment (2021)
Working Paper: The Anatomy of a Hospital System Merger: The Patient Did Not Respond Well to Treatment (2021)
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