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Price Effects of Dutch Hospital Mergers: An Ex Post Assessment of Hip Surgery

NMa Working Paper No. 2

42 Pages Posted: 27 Feb 2011  

Ron Kemp

Wageningen UR; Authority for consumers and Markets

Astrid Severijnen

Netherlands Competition Authority (NMa)

Date Written: February 25, 2011

Abstract

This study analyses price effects of two mergers in the Dutch healthcare industry. We investigate whether the merging hospitals raised their prices for hip surgery after the merger and, if so, how patients react to this higher price. For the Ziekenhuis Hilversum-Ziekenhuis Gooi-Noor merger, authors found a statistically significant price increase for hip surgery, whereas for the Erasmus MC Ziekenhuis-Havenziekenhuis Rotterdam merger, authors did not find a significant price increase due to the merger. For both mergers, travel behaviour of patients prior and after the merger increased only slightly. As only one treatment is studied, hip surgery, authors cannot draw conclusions on the overall price effect of the mergers.

Keywords: Mergers, Healthcare, Hospitals, Netherlands

JEL Classification: K21, K32, D49

Suggested Citation

Kemp, Ron and Severijnen, Astrid, Price Effects of Dutch Hospital Mergers: An Ex Post Assessment of Hip Surgery (February 25, 2011). NMa Working Paper No. 2. Available at SSRN: https://ssrn.com/abstract=1769544 or http://dx.doi.org/10.2139/ssrn.1769544

Ron Kemp (Contact Author)

Wageningen UR ( email )

Hollandseweg 1
Wageningen, 6706KN
Netherlands

Authority for consumers and Markets ( email )

P.O. Box 16326
Muzenstraat 41
The Hague, 2500 BH
Netherlands

Astrid Severijnen

Netherlands Competition Authority (NMa) ( email )

Wijnhaven 24
NL-2511 GA The Hague, 2500 BH
Netherlands

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