A Retrospective Analysis of the Clinical Quality Effects of the Acquisition of Highland Park Hospital by Evanston Northwestern Healthcare

U.S. Federal Trade Commission, Bureau of Economics, Working Paper No. 307

30 Pages Posted: 25 Nov 2010  

David J. Balan

U.S. Federal Trade Commission

Patrick Romano

University of California, Davis Division of General Medicine

Date Written: November 16, 2010

Abstract

In 2004, the Federal Trade Commission brought legal action retrospectively challenging the 2000 acquisition of Highland Park Hospital by Evanston Northwestern Healthcare in Evanston, Illinois. A major issue in the case was whether the merger had resulted in improved clinical quality at Highland Park. In this paper, we report the findings of our analysis of that issue. We examined numerous quantitative measures of clinical quality and found little evidence that the merger improved quality. We also describe the conceptual framework in which we evaluated the case-specific evidence, as well as the applicability of that framework to the prospective analysis of unconsummated hospital mergers.

Keywords: Hospital Mergers, Merger Retrospectives, Antitrust Enforcement, Health Care Quality

JEL Classification: I10, L40

Suggested Citation

Balan, David J. and Romano, Patrick, A Retrospective Analysis of the Clinical Quality Effects of the Acquisition of Highland Park Hospital by Evanston Northwestern Healthcare (November 16, 2010). U.S. Federal Trade Commission, Bureau of Economics, Working Paper No. 307. Available at SSRN: https://ssrn.com/abstract=1714627 or http://dx.doi.org/10.2139/ssrn.1714627

David J. Balan (Contact Author)

U.S. Federal Trade Commission ( email )

600 Pennsylvania Ave., NW
Washington, DC 20580
United States

Patrick Romano

University of California, Davis Division of General Medicine ( email )

4150 V Street PSSB
Suite 2400
Sacramento, CA 95817
United States

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