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Price Effects of Dutch Hospital Mergers: An Ex-post Assessment of Hip Surgery

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  • Ron Kemp
  • Nikki Kersten
  • Astrid Severijnen

Abstract

This study analyses price effects of six mergers in the Dutch healthcare industry. We investigate whether the merging hospitals raised their prices for hip surgery after the merger and, if so, how patients react to this higher price. For seven of the twelve hospitals involved, we found a statistically significant price increase for hip surgery, for three hospitals we found a significant price decrease. There is no clear relationship between price changes of hip surgery and changes in travelling behaviour of patients post merger. Copyright The Author(s) 2012

Suggested Citation

  • Ron Kemp & Nikki Kersten & Astrid Severijnen, 2012. "Price Effects of Dutch Hospital Mergers: An Ex-post Assessment of Hip Surgery," De Economist, Springer, vol. 160(3), pages 237-255, September.
    • Handle: RePEc:kap:decono:v:160:y:2012:i:3:p:237-255
    DOI: 10.1007/s10645-012-9189-6
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    9. Henk Don & Ron Kemp & Jarig Sinderen, 2008. "Measuring the Economic Effects of Competition Law Enforcement," De Economist, Springer, vol. 156(4), pages 341-348, December.
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    13. Frederik T. Schut & Wynand P. M. M. Van de Ven, 2005. "Rationing and competition in the Dutch health‐care system," Health Economics, John Wiley & Sons, Ltd., vol. 14(S1), pages 59-74, September.
    14. Steven Tenn, 2011. "The Price Effects of Hospital Mergers: A Case Study of the Sutter-Summit Transaction," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 18(1), pages 65-82.
    15. Varkevisser, Marco & Capps, Cory S. & Schut, Frederik T., 2008. "Defining hospital markets for antitrust enforcement: new approaches and their applicability to The Netherlands," Health Economics, Policy and Law, Cambridge University Press, vol. 3(1), pages 7-29, January.
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    Cited by:

    1. Martin Gaynor & Kate Ho & Robert J. Town, 2015. "The Industrial Organization of Health-Care Markets," Journal of Economic Literature, American Economic Association, vol. 53(2), pages 235-284, June.
    2. Zack Cooper & Stuart V Craig & Martin Gaynor & John Van Reenen, 2019. "The Price Ain’t Right? Hospital Prices and Health Spending on the Privately Insured," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(1), pages 51-107.
    3. Franco Mariuzzo & Peter L. Ormosi, 2017. "Post-merger price dynamics matter, so why do merger retrospectives ignore them?," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2016-05, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    4. Gaynor, Martin & Town, Robert J., 2011. "Competition in Health Care Markets," Handbook of Health Economics, in: Mark V. Pauly & Thomas G. Mcguire & Pedro P. Barros (ed.), Handbook of Health Economics, volume 2, chapter 0, pages 499-637, Elsevier.
    5. Rabbani, Maysam, 2023. "Mergers with future rivals can boost prices, bar entry, and intensify market concentration," International Journal of Industrial Organization, Elsevier, vol. 88(C).
    6. Maysam Rabbani, 2021. "Non-profit hospital mergers: the effect on healthcare costs and utilization," International Journal of Health Economics and Management, Springer, vol. 21(4), pages 427-455, December.
    7. Rob J. M. Alessie & Peter T. Dijkstra & Ron Kemp & Annemieke Tuinstra & Jarig Sinderen, 2018. "Impact Assessment of Competition Policies and Regulation: 10 Years’ Experience from the Office of the Chief Economist in the Netherlands," De Economist, Springer, vol. 166(1), pages 1-6, March.
    8. Rabbani, Maysam, 2021. "Mergers with Future Rivals Can Boost Prices, Intensify Market Concentration, and Bar Entry," MPRA Paper 112864, University Library of Munich, Germany, revised 26 Apr 2022.

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    More about this item

    Keywords

    Competition law enforcement; Merger control; Ex-post studies; Healthcare; D49; L40; L50; L80;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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