The Effect of Physician-Hospital Affiliations on Hospital Prices in California

Posted: 26 Jan 2005

See all articles by Federico Ciliberto

Federico Ciliberto

University of Virginia - Department of Economics; Centre for Economic Policy Research (CEPR)

David Dranove

Northwestern University - Kellogg School of Management

Abstract

During the 1990s, a record number of U.S. hospitals entered into some form of vertical combination with physicians. During the same period, many integrated hospital-physician arrangements broke up. Using data from California, we investigate whether such vertical activity affected hospital pricing. We find that, on average, neither integration nor disintegration was associated with changes in prices. Integration among rural hospitals is associated with large price decreases, but the sample of such hospitals is small.

Keywords: Hospital, vertical integration, physicians

JEL Classification: I11, L22

Suggested Citation

Ciliberto, Federico and Dranove, David, The Effect of Physician-Hospital Affiliations on Hospital Prices in California. Journal of Health Economics, Vol. 25, No. 1, pp. 29-38, January 2006, Available at SSRN: https://ssrn.com/abstract=654122

Federico Ciliberto (Contact Author)

University of Virginia - Department of Economics ( email )

P.O. Box 400182
Charlottesville, VA 22904-4182
United States

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

David Dranove

Northwestern University - Kellogg School of Management ( email )

2001 Sheridan Road
Evanston, IL 60208
United States
847-491-8682 (Phone)
847-467-1777 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
1,068
PlumX Metrics