The behavior of multihospital chains in increasingly competitive California hospital markets: pro- or anti-competitive?
In previous literature, no evidence of competitive advantage has been found from hospital affiliation with chains. In this paper, the role of chains in hospital adaptation to a more competitive environment is examined further. Two dimensions of hospital behavior are examined: the propensity to engage in contractual arrangements with insurers, and the effect of a changed competitive environment on preferred acquisition targets by chains. We find evidence that chains behave pro-competitively in the short run, and discuss policy implications of the observed market restructuring in the longer run.
School of Business Administration, Oakland University, Rochester, MI.
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Mobley
D002140:California; D003284:Contract Services / Q000191:economics / Q000706:statistics & numerical data; D004465:Economic Competition; D006273:Health Facility Merger / Q000706:statistics & numerical data / Q000639:trends; D017722:Hospital Charges; D008329:Managed Care Programs / Q000706:statistics & numerical data; D009096:Multi-Institutional Systems / Q000145:classification / Q000191:economics*; D010067:Ownership / Q000706:statistics & numerical data