Mergers and marginal costs: New evidence on hospital buyer power.

We estimate the effects of hospital mergers, using detailed data containing medical supply transactions (representing 23% of operating costs) from a sample of US hospitals, 2009–2015. Pre‐merger price variation across hospitals (Gini coefficient 7%) suggests significant opportunities for cost decrea...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 52; no. 1; pp. 151 - 179
Autores principales: Craig, Stuart V., Grennan, Matthew, Swanson, Ashley
Formato: Artículo
Publicado: Wiley-Blackwell Mar2021
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Mergers and marginal costs: New evidence on hospital buyer power.
      aug:
        au:
          Craig, Stuart V.
          Grennan, Matthew
          Swanson, Ashley
        affil:
          University of Pennsylvania
          Columbia University
      su:
        Hospital mergers
        Gini coefficient
        Medical supplies
        Operating costs
      sug:
        subj:
          General (except paediatric) hospitals
          General Medical and Surgical Hospitals
          Professional machinery, equipment and supplies merchant wholesalers
          Medical, Dental, and Hospital Equipment and Supplies Merchant Wholesalers
          Hospital mergers
          Gini coefficient
          Medical supplies
          Operating costs
      ab: We estimate the effects of hospital mergers, using detailed data containing medical supply transactions (representing 23% of operating costs) from a sample of US hospitals, 2009–2015. Pre‐merger price variation across hospitals (Gini coefficient 7%) suggests significant opportunities for cost decreases. However, we observe limited evidence of actual savings. In this retrospective study, targets realized 1.9% savings; acquirers realized no significant savings. Examining treatment effect heterogeneity to shed light on theories of "buyer power," we find that savings, when they occur, tend to be local, and potential benefits of savings may be offset by managerial costs of merging.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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