The Welfare Consequences of Hospital Mergers

Topics:
Healthcare Services,
Insurance
Tags:
Finance,
Healthcare,
Hospital,
Impact,
Investment,
Merger,
Mergers & Acquisitions,
University Of Minnesota
Source:
University of Minnesota

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Overview: In the 1990s the US hospital industry consolidated. This paper estimates the impact of the wave of hospital mergers on welfare focusing on the impact on consumer surplus for the under-65 population. For the purposes of quantifying the price impact of consolidations, hospitals are modeled as an input to the production of health insurance for the under-65 population. The estimates indicate that the aggregate magnitude of the impact of hospital mergers is modest but not trivial.

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Format: PDF | Size: 262KB | Date: May 2006 | Pages: 53

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