Send to:

Choose Destination
See comment in PubMed Commons below
J Health Econ. 2001 Mar;20(2):213-37.

Market restructuring and pricing in the hospital industry.

Author information

  • 1Eli Broad School of Business, Michigan State University, N251 North Business Complex, East Lansing, MI 48824, USA.


This paper examines the diagnosis related group-level (DRG) price effects of recent hospital mergers and acquisitions that occurred in Ohio and California. Empirical results indicate that hospital mergers and acquisitions increase prices at the DRG level. Further, price increases are greater in DRGs where the merging hospitals gained substantial market share compared to DRGs where the merging hospitals did not gain significant market share. These results suggest that DRG specific market share plays an important role in a hospital's post-merger pricing strategy.

[PubMed - indexed for MEDLINE]
PubMed Commons home

PubMed Commons

How to join PubMed Commons

    Supplemental Content

    Full text links

    Icon for Elsevier Science
    Loading ...
    Write to the Help Desk