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Mergers between Competing Hospitals: Lessons from Retrospective Analyses

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  • Deborah Haas-Wilson
  • Michael Vita

Abstract

In April 2002, the Federal Trade Commission (FTC) announced the Hospital Merger Retrospective Project to study consummated hospital mergers. This project was precipitated by a long string of unsuccessful hospital merger challenges by the FTC, the US Department of Justice, and the state of California. Accordingly, a principal goal of the retrospective study included "studying consummated hospital mergers to determine whether particular hospital mergers have led to higher prices". The studies presented here represent the output of this project. Collectively, these studies provide important empirical insights into a variety of issues relevant to hospital antitrust analysis, including the scope of relevant geographic markets in hospital merger analysis, the relevance of not-for-profit status on post-merger pricing behavior, and the impact of hospital mergers on clinical quality.

Suggested Citation

  • Deborah Haas-Wilson & Michael Vita, 2011. "Mergers between Competing Hospitals: Lessons from Retrospective Analyses," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 18(1), pages 1-4.
    • Handle: RePEc:taf:ijecbs:v:18:y:2011:i:1:p:1-4
    DOI: 10.1080/13571516.2011.542947
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    References listed on IDEAS

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    1. Christopher T. Taylor & Nicholas M. Kreisle & Paul R. Zimmerman, 2010. "Vertical Relationships and Competition in Retail Gasoline Markets: Empirical Evidence from Contract Changes in Southern California: Comment," American Economic Review, American Economic Association, vol. 100(3), pages 1269-1276, June.
    2. Michael G. Vita & Seth Sacher, 2001. "The Competitive Effects of Not‐for‐Profit Hospital Mergers: A Case Study," Journal of Industrial Economics, Wiley Blackwell, vol. 49(1), pages 63-84, March.
    3. John Simpson & Christopher Taylor, 2008. "Do Gasoline Mergers Affect Consumer Prices? The Marathon Ashland Petroleum and Ultramar Diamond Shamrock Transaction," Journal of Law and Economics, University of Chicago Press, vol. 51(1), pages 135-152, February.
    4. Barton, David M & Sherman, Roger, 1984. "The Price and Profit Effects of Horizontal Merger: A Case Study," Journal of Industrial Economics, Wiley Blackwell, vol. 33(2), pages 165-177, December.
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    Cited by:

    1. Paul Pautler, 2015. "A Brief History of the FTC’s Bureau of Economics: Reports, Mergers, and Information Regulation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 46(1), pages 59-94, February.

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