The Price Effects of Cross-market Hospital Mergers
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Published: 2016
Total Pages:
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DOWNLOAD EBOOKRead and Download eBook Full
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Published: 2016
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DOWNLOAD EBOOKAuthor: Cory Stephen Capps
Publisher:
Published: 2005
Total Pages: 54
ISBN-13:
DOWNLOAD EBOOKAuthor: Michael G. Vita
Publisher: DIANE Publishing
Published: 1999
Total Pages: 48
ISBN-13: 1428958452
DOWNLOAD EBOOKAuthor: Federal Trade Commission
Publisher:
Published: 2014-09-25
Total Pages: 30
ISBN-13: 9781502493859
DOWNLOAD EBOOKThis consummated merger combined two hospitals located close together in the Oakland-Berkeley region of the San Francisco Bay Area. The greater metropolitan area contained many other hospitals that offered a similar range of services, but which were located farther away. A central issue raised by the Sutter-Summit transaction was whether travel costs were low enough such that these hospitals were a sufficient constraint on the merging parties to prevent an anticompetitive price increase. We use detailed claims data from three large health insurers to compare the post-merger price change for the merging parties to the price change for a set of control group hospitals. Our results show that Summit's price increase was among the largest of any comparable hospital in California, indicating this transaction may have been anticompetitive.
Author: Steven Tenn
Publisher:
Published: 2008
Total Pages:
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Publisher: American Bar Association
Published: 2003
Total Pages: 222
ISBN-13: 9781590312230
DOWNLOAD EBOOKThe health care industry continues to undergo unprecedented consolidation. Health care providers and payors alike have pursued a wide variety of integrative strategies to achieve efficiencies or other business advantages. The Health Care Mergers and Acquisitions Handbook is designed to educate the practitioner about the antitrust analysis of mergers and acquisitions within the health care industry. Over the past two decades there has been an extraordinary amount of litigation related to challenges of hospital mergers. Each chapter identifies and analyzes important antitrust issues governing such consolidations. Accordingly, the first several chapters are devoted to a detailed treatment of substantive issues peculiar to such mergers: an introduction to hospital merger litigation, describing trends in litigation and the way in which such mergers are analyzed; issues unique to market definition, including product market definition and geographic market definition; the competitive effects of hospital mergers, assessing the evidence necessary to establish a prima facie case in a merger challenge and the rebuttal arguments offered by merging parties; a unique rebuttal argument offered by merging hospitals that is treated separately due to its prominent role in hospital merger litigation - the role and significance of efficiencies in determining the competitive merits of such mergers; the potential applicability of the state action doctrine to hospital mergers. In addition to a substantive treatment of hospital mergers, the Handbook also addresses; combinations of health care management organizations (HMOs) and physician practice groups; the analysis used by the enforcement agencies when reviewing mergers of HMOs; antitrust issues posed by physician practice consolidations. The appendix contains a chart summarizing litigated hospital mergers.--
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Published: 1999
Total Pages: 47
ISBN-13:
DOWNLOAD EBOOKAuthor: Ranjani Krishnan
Publisher:
Published: 2010
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOKThis paper examines the price effects of recent hospital mergers and acquisitions. Using data from mergers and acquisitions that occurred in Ohio and California I examine post merger price changes at the level of individual services or Diagnosis Related Groups (DRGs). Results indicate that hospital mergers and acquisitions result in increased prices at the DRG level. Further, price increases are greater in DRGs where the merging hospitals gained substantial market power compared to DRGs where the merging hospitals did not gain significant market power. These results suggest that DRG specific market power plays an important role in a hospital's post-merger pricing strategy.
Author: Federal Trade Commission
Publisher: CreateSpace
Published: 2014-09-14
Total Pages: 48
ISBN-13: 9781502365576
DOWNLOAD EBOOKApplying conventional horizontal merger enforcement rules to mergers of nonprofit hospitals is controversial. Critics contend that the different objective function of not-for-profits entities should mitigate, and possibly eliminate, competitive concerns about mergers involving nonprofit hospitals. We provide evidence relevant to this debate by analyzing ex post a horizontal merger in a concentrated hospital market. Here, the transaction reduced the number of competitors (both nonprofit) in the alleged relevant market from three to two. We find that the transaction resulted in significant price increases; we reject the hypothesis that these price increases reflect higher post-merger quality. This study should help policymakers assess the validity of current merger enforcement rules, especially as they apply to not-for-profit enterprises.
Author: Keith Brand
Publisher:
Published: 2022
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOKWe examine 558 hospital mergers during a period of increased antitrust enforcement. Using US data on commercially insured patients from 2009-2016, we estimate an average price effect of roughly 5% with a smaller effect for mergers later in the sample. Mergers between hospitals that were substitutes for patients, in unconcentrated insurance markets, and less likely to lead to efficiencies had higher price increases. Using administrative data on merger investigations, we estimate higher than average price increases for mergers selected for more detailed investigation and find no evidence of higher than average price increases for non-reportable mergers.