Obamacare and the Theory of the Firm

Einer Elhauge

Harvard Law School

August 17, 2013

Malani and Schill, eds., The Future of Health Care Reform (U. Chicago Press 2014), Forthcoming

Health care fragmentation today raises costs and worsens health outcomes. The theory of the firm indicates that cost and quality problems could be addressed by permitting greater vertical integration among complementary health care providers. The puzzle is why such integration does not occur. The answer is that a host of regulatory and payment laws create artificial obstacles to such integration. Various provisions in Obamacare could and should be used to lift these obstacles and allow health care integration that could potentially save tens of thousands of lives and hundreds of billions of dollars.

Number of Pages in PDF File: 32

Keywords: Obamacare, Theory of the Firm, fragmentation, health care, integration

JEL Classification: I10, I11, I12, I18, K10, K22, K23

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Date posted: July 13, 2013 ; Last revised: August 18, 2013

Suggested Citation

Elhauge, Einer, Obamacare and the Theory of the Firm (August 17, 2013). Malani and Schill, eds., The Future of Health Care Reform (U. Chicago Press 2014), Forthcoming. Available at SSRN: http://ssrn.com/abstract=2293073

Contact Information

Einer R. Elhauge (Contact Author)
Harvard Law School ( email )
1575 Massachusetts
Hauser 406
Cambridge, MA 02138
United States
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