- Title Information
- Title
- Foisted: The Spillover Effects of Hospital Mergers on Costs and Utilization
- Type of Resource (primo)
- articles
- Abstract
- Market power enables firms to restrict quantities and provide services to higher-paying
consumers. We study this question using hospital mergers over the 2011 to 2022 period.
Consistent with previous work, we find mergers lead to own-hospital reductions in staffing and
patient volume, which are driven by decreases in lower-paying public patients. We also find
decreases in births, which are heavily paid for by Medicaid. Where do these patients and
providers go? We find corresponding increases in public payer volume, staffing, and procedure
volume at non-merging neighboring hospitals. In addition, per-procedure discharge costs
increase and operating margins decrease at non-merging hospitals. These increases in
lower-paying patient populations and operating costs contribute to a nearly 40% increase in
the likelihood of non-merging hospital exit. Overall, our collection of findings document how
hospital mergers have understudied spillover effects on patient access to care and market
stability.
- Name
- Name Part
- Daniel R. Arnold
- Role
- Role Term (marcrelator)
(authorityURI="http://id.loc.gov/vocabulary/relators", valueURI="http://id.loc.gov/vocabulary/relators/aut")
- Author
- Name
- Name Part
- Nandita Radhakrishnan
- Role
- Role Term (marcrelator)
(authorityURI="http://id.loc.gov/vocabulary/relators", valueURI="http://id.loc.gov/vocabulary/relators/aut")
- Author
- Name
- Name Part
- Christopher Whaley
- Role
- Role Term (marcrelator)
(authorityURI="http://id.loc.gov/vocabulary/relators", valueURI="http://id.loc.gov/vocabulary/relators/aut")
- Author
- Origin Information
- Date Created
- 2025
- Subject (Local)
- Topic
- access to care
- Subject (Local)
- Topic
- Hospital Mergers
- Subject (Local)
- Topic
- foreclosure
- Subject (Local)
- Topic
- spillover effects of consolidation
- Subject (Local)
- Topic
- safety-net hospitals
- Genre
- Working Paper
- Access Condition:
use and reproduction
- All rights reserved
- Access Condition:
rights statement
(href="http://rightsstatements.org/vocab/InC/1.0/")
- In Copyright
- Access Condition:
restriction on access
- All Rights Reserved
- Identifier:
DOI
- 10.26300/em9c-1t33