Hospital Integration and Vertical Consolidation: An Analysis of Acquisitions in New York State

Robert Huckman

No 11379, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: While prior studies tend to view hospital integration through the lens of horizontal consolidation, I provide an analysis of its vertical aspects. I examine the effect of hospital acquisitions in New York State on the distribution of market share for major cardiac procedures across providers in target markets. I find evidence of benefits to acquirers via business stealing, with the resulting redistribution of volume across providers having small effects, if any, on total welfare with respect to cardiac care. The results of this analysis--along with similar assessments for other services--can be incorporated into future studies of hospital consolidation.

JEL-codes: I1 L2 (search for similar items in EconPapers)
Date: 2005-05
New Economics Papers: this item is included in nep-com and nep-hea
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Published as Huckman, Robert S. "Hospital Integration And Vertical Consolidation: An Analysis Of Acquisitions In New York State," Journal of Health Economics, 2006, v25(1,Jan), 58-80.

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Journal Article: Hospital integration and vertical consolidation: An analysis of acquisitions in New York State (2006)
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