Getting Down to Business: Chain Ownership and Fertility Clinic Performance

Abstract

Chain ownership has been credited with boosting firm performance in the retail and service sectors but criticized for prioritizing profits over the well-being of patients in the healthcare sector. This paper finds that chain organizations improve healthcare outcomes in a setting with relatively minimal market frictions and information asymmetries: the market for In Vitro Fertilization (IVF). After acquisition by a fertility chain, IVF clinic volume increases by 28.2%, and IVF success rates increase by 13.6%. We provide evidence that fertility chains facilitate resource and knowledge transfers needed to enhance clinic quality, benefit underperforming clinics, and expand the IVF market.

Note:
Funding Information: None.

Conflict of Interests: No competing interests.

Keywords: Chain organizations, Acquisitions, Fertility, IVF, Quality, Firm Performance

JEL Classification: I1, I11, L2, L20, G34