Hospital Integration and Vertical Consolidation: An Analysis of Acquisitions in New York State

45 Pages Posted: 4 Jul 2005 Last revised: 4 Feb 2021

See all articles by Robert S. Huckman

Robert S. Huckman

Harvard Business School; National Bureau of Economic Research (NBER)

Date Written: May 2005

Abstract

While prior studies tend to view hospital integration through the lens of horizontal consolidation, I provide an analysis of its vertical aspects. I examine the effect of hospital acquisitions in New York State on the distribution of market share for major cardiac procedures across providers in target markets. I find evidence of benefits to acquirers via business stealing, with the resulting redistribution of volume across providers having small effects, if any, on total welfare with respect to cardiac care. The results of this analysis--along with similar assessments for other services--can be incorporated into future studies of hospital consolidation.

Suggested Citation

Huckman, Robert S., Hospital Integration and Vertical Consolidation: An Analysis of Acquisitions in New York State (May 2005). NBER Working Paper No. w11379, Available at SSRN: https://ssrn.com/abstract=731034

Robert S. Huckman (Contact Author)

Harvard Business School ( email )

Technology & Operations Management
435 Morgan Hall
Boston, MA 02163
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
31
Abstract Views
832
PlumX Metrics