Consolidation in the Medical Care Marketplace: A Case Study from Masschusetts

58 Pages Posted: 1 Aug 2000 Last revised: 3 Apr 2008

See all articles by Jason R. Barro

Jason R. Barro

HBS Negotiations, Organizations and Markets Unit; National Bureau of Economic Research (NBER)

David M. Cutler

Harvard University - Department of Economics; National Bureau of Economic Research (NBER); Harvard University - Harvard Kennedy School (HKS)

Date Written: March 1997

Abstract

This paper examines consolidation in the Massachusetts hospital market. We find that consolidation is driven primarily by a large decline in the demand for hospital beds, resulting from increased enrollment in managed care and technological changes. The drive to consolidate appears through three primary forces: consolidation for closure; consolidation for economies of scale; and consolidation for network creation.

Suggested Citation

Barro, Jason R. and Cutler, David M., Consolidation in the Medical Care Marketplace: A Case Study from Masschusetts (March 1997). NBER Working Paper No. w5957. Available at SSRN: https://ssrn.com/abstract=225737

Jason R. Barro

HBS Negotiations, Organizations and Markets Unit ( email )

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National Bureau of Economic Research (NBER)

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David M. Cutler (Contact Author)

Harvard University - Department of Economics ( email )

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National Bureau of Economic Research (NBER) ( email )

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Harvard University - Harvard Kennedy School (HKS) ( email )

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United States

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