Seminar: Price effects of a hospital merger: heterogeneity across health insurers, hospital products and hospital locations

Time: 13.00-14.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

Presentation: Anne-Fleur Roos (EUR)

Discussant: Suzanne Ruwaard (CPB)

Language: English

Registration: Please register by sending an email to seminars@cpb.nl.

Abstract subject:
In most studies on hospital merger effects, the unit of observation is the merged hospital, whereas the observed price is the weighted average across hospital products and across payers. However, little is known about whether price effects vary between hospital locations, products and payers. We use a difference-in-difference model in which price changes at the merging hospitals are compared to price changes for a group of comparison hospitals. We find evidence of heterogeneous price effects between neighboring hospitals across health insurers, hospital products and hospital locations. This finding has important implications for ex ante merger scrutiny by antitrust authorities.

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