Hospital integration and vertical consolidation: an analysis of acquisitions in New York State.
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.
Huckman
Robert S
RS
Harvard University and NBER, 435 Morgan Hall, Harvard Business School, Boston, MA 02163, USA. rhuckman@hbs.edu
D015906:Angioplasty, Balloon, Coronary / Q000191:economics; D001026:Coronary Artery Bypass / Q000191:economics; D004465:Economic Competition; D006273:Health Facility Merger; D006801:Humans; D009518:New York