Which Types of Hospital Mergers Save Consumers Money?

Robert A. Connor, Roger D. Feldman, Bryan E. Dowd, Tiffany A. Radcliff

Research output: Contribution to journalArticlepeer-review

64 Scopus citations

Abstract

This study analyzes the changes in costs and prices from 1986 to 1994 for more than 3,500 U.S. short-term general hospitals, including 122 horizontal mergers. These mergers were generally financially beneficial to consumers, providing average price reductions of approximately 7 percent. Merger-related price reductions were considerably less in market areas with higher market concentration levels. Merger-related price reductions in areas with higher penetration by health maintenance organizations (HMOs) were approximately twice those in areas with lower HMO penetration. Merger-related price reductions were greater for low-occupancy hospitals, nonteaching hospitals, nonsystem hospitals, similar-size hospitals, and hospitals with greater premerger service duplication.

Original languageEnglish (US)
Pages (from-to)62-74
Number of pages13
JournalHealth Affairs
Volume16
Issue number6
DOIs
StatePublished - 1997

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