Format

Send to

Choose Destination
J Health Econ. 2018 May;59:139-152. doi: 10.1016/j.jhealeco.2018.04.001. Epub 2018 Apr 22.

The effect of hospital acquisitions of physician practices on prices and spending.

Author information

1
Bates White Economic Consulting, 1300 Eye Street, NW, Washington, DC 20005, United States. Electronic address: cory.capps@bateswhite.com.
2
Northwestern University, 2001 Sheridan Rd, Evanston, IL 60208, United States. Electronic address: d-dranove@kellogg.northwestern.edu.
3
Northwestern University, 2001 Sheridan Rd, Evanston, IL 60208, United States. Electronic address: c-ody@kellogg.northwestern.edu.

Abstract

During the past decade, U.S. hospitals have acquired a large number of physician practices. For example, from 2007 to 2013, hospitals acquired nearly 10% of the practices in our sample. We find that the prices for the services provided by acquired physicians increase by an average of 14.1% post-acquisition. Nearly half of this increase is attributable to the exploitation of payment rules. Price increases are larger when the acquiring hospital has a larger share of its inpatient market. We find that integration of primary care physicians increases enrollee spending by 4.9%.

KEYWORDS:

Healthcare spending; Hospitals; Integration; Mergers; Physicians

Supplemental Content

Full text links

Icon for Elsevier Science
Loading ...
Support Center