The effect of hospital acquisitions of physician practices on prices and spending
David Dranove and
Journal of Health Economics, 2018, vol. 59, issue C, 139-152
During the past decade, U.S. hospitals have acquired a large number of physician practices. For example, from 2007 to 2013, hospitals acquired nearly 10% of the practices in our sample. We find that the prices for the services provided by acquired physicians increase by an average of 14.1% post-acquisition. Nearly half of this increase is attributable to the exploitation of payment rules. Price increases are larger when the acquiring hospital has a larger share of its inpatient market. We find that integration of primary care physicians increases enrollee spending by 4.9%.
Keywords: Physicians; Hospitals; Mergers; Integration; Healthcare spending (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:59:y:2018:i:c:p:139-152
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