Working Paper: NBER ID: w11379
Authors: Robert S. Huckman
Abstract: While prior studies tend to view hospital integration through the lens of horizontal consolidation, I provide an analysis of its vertical aspects. I examine the effect of hospital acquisitions in New York State on the distribution of market share for major cardiac procedures across providers in target markets. I find evidence of benefits to acquirers via business stealing, with the resulting redistribution of volume across providers having small effects, if any, on total welfare with respect to cardiac care. The results of this analysis--along with similar assessments for other services--can be incorporated into future studies of hospital consolidation.
Keywords: hospital integration; vertical consolidation; acquisitions; market share; cardiac procedures
JEL Codes: I1; L2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Increase in acquirer's share of cardiac procedures (G34) | Minimal welfare implications (D69) |
| Hospital acquisitions (G34) | Increase in acquirer's share of cardiac procedures (G34) |
| Hospital acquisitions (G34) | Market share for CABG procedures (I11) |
| Hospital acquisitions (G34) | Market share for PTCA procedures (D33) |
| Hospital acquisitions (G34) | Changes in market share post-acquisition (G34) |