New evidence on the impacts of cross-market hospital mergers on commercial prices and measures of quality.

ABSTRACT:

Objective

To examine the impact of "cross-market" hospital mergers on prices and quality and the extent to which serial acquisitions contribute to any measured effects.

Data sources

2009-2017 commercial claims from the Health Care Cost Institute (HCCI) and quality measures from Hospital Compare.

Study design

Event study models in which the treated group consisted of hospitals that acquired hospitals further than 50 miles, and the control group was hospitals that were not part of any merger activity (as a target or acquirer) during the study period.

Data extraction methods

We extracted data for 214 treated hospitals and 955 control hospitals.

Principal findings

Six years after acquisition, cross-market hospital mergers had increased acquirer prices by 12.

SUBMITTER: Arnold DR 

PROVIDER: S-EPMC11782062 | biostudies-literature | 2025 Feb

REPOSITORIES: biostudies-literature