The Effect of Physician-Hospital Affiliations on Hospital Prices in California
Posted: 26 Jan 2005
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: 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
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