The impact of hospital mergers on treatment intensity and health outcomes.

ABSTRACT:

Objective

To analyze the impact of hospital mergers on treatment intensity and health outcomes.

Data

Hospital inpatient data from California for 1990 through 2006, encompassing 40 mergers.

Study design

I used a geographic-based IV approach to determine the effect of a zip code's exposure to a merger. The merged facility's market share represents exposure, instrumented with combined premerge shares. Additional specifications include Herfindahl Index (HHI), instrumented with predicted change in HHI.

Results

The primary specification results indicate that merger completion is associated with a 3.7 percent increase in the utilization of bypass surgery and angioplasty and a 1.7 percent increase in inpatient mortality above averages in 2000 for the average zip code.

SUBMITTER: Hayford TB 

PROVIDER: S-EPMC3423176 | biostudies-literature | 2012 Jun

REPOSITORIES: biostudies-literature