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Mergers and Marginal Costs: New Evidence on Hospital Buyer Power / Stuart Craig, Matthew Grennan, Ashley Swanson.
- Format:
- Book
- Author/Creator:
- Craig, Stuart.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w24926.
- NBER working paper series no. w24926
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- Mergers and Marginal Costs
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2018.
- Summary:
- We estimate the effects of horizontal mergers on marginal cost efficiencies - an ubiquitous merger justification - using data containing supply purchase orders from a large sample of US hospitals 2009-2015. The data provide a level of detail that has been difficult to observe previously, and a variety of product categories that allows us to examine economic mechanisms underlying "buyer power." We find that merger target hospitals save on average $176 thousand (or 1.5 percent) annually, driven by geographically local efficiencies in price negotiations for high-tech "physician preference items." We find only mixed evidence on savings by acquirers.
- Notes:
- Print version record
- August 2018.
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