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Price Effects Of A Merger: Evidence From A Physicians' Market

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  • Thomas Koch
  • Shawn W. Ulrick

Abstract

The relationship between physician concentration and prices is of interest to policy makers, public health officials, and insurers. We examine how a merger of orthopaedic physicians in Berks County, Pennsylvania, affected prices. We use claims‐level data from three private payors in the region to compare the price changes of the merged practices to those in nearby areas plausibly not affected by the merger. The merged practices increased prices to two of the three payors by 10–20%, while prices in the control geographies remained largely unchanged, on average, suggesting prices increased due to postmerger increases in market power. (JEL I13, K21, L4)

Suggested Citation

  • Thomas Koch & Shawn W. Ulrick, 2021. "Price Effects Of A Merger: Evidence From A Physicians' Market," Economic Inquiry, Western Economic Association International, vol. 59(2), pages 790-802, April.
    • Handle: RePEc:bla:ecinqu:v:59:y:2021:i:2:p:790-802
    DOI: 10.1111/ecin.12954
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    More about this item

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L4 - Industrial Organization - - Antitrust Issues and Policies

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