We’re Hiring!
The Petris Center plans to hire a postdoctoral fellow for the 2021-2022 academic year beginning in August. To qualify, you must have your doctorate (or equivalent international degree) in economics, health economics, health policy, or a related field. An official announcement of the position will be posted here soon, including information on how to apply. Contact Crystal Haryanto at crystalharyanto@berkeley.edu for further information.
Recent Research in the Media
- Modern Healthcare Interviews Richard Scheffler Regarding Growing Private Equity Investment in Healthcare
Modern Healthcare interviewed Richard Scheffler for an article discussing the growing trend of private equity investment in the healthcare sector. They also cite his recent report on the topic. The interview took place after the noteworthy buyout of medical supply company Medline by a trio of private equity firms—Blackstone Group, Carlyle and Hellman & Friedman. As Dr. Scheffler puts it, this may be “the start of an explosion of private equity deals in healthcare.”
Read the full article here.
- U.S. Senate Subcommittee on Competition Policy, Antitrust, and Consumer Rights Cites Petris Center’s Richard Scheffler, Private Equity Report
The Petris Center and American Antitrust Institute (AAI)’s joint report on rising private equity investment in the healthcare industry was cited during the May 19 hearing of the U.S. Senate Committee on the Judiciary’s Subcommittee on Competition Policy, Antitrust, and Consumer Rights as part of the discussion about hospital consolidation and competition. The Petris Center’s Richard Scheffler and AAI’s Laura Alexander were recognized by name as the authors of this report.
Senator Blumenthal (D-CT) expressed concern over the impact of private equity investment on hospital consolidation and quality of patient care. He asked witness Professor Martin S. Gaynor of Carnegie Mellon University for his assessment of the role of hospital debt burden in necessitating hospital closures or mergers. Professor Gaynor then cited Richard Scheffler and Laura Alexander’s recent private equity report, noting that there is significant concern about private equity activity leading to consolidation and potentially diminishing quality of care due to misaligned incentives between private equity investors and patients and physicians.
Hear Senator Blumenthal and Professor Gaynor’s discussion of hospital consolidation and the private equity report during the May 19 hearing, beginning at about 1:25.
- Inquiry Publishes Study on Hospital-Physician Vertical Integration and Outpatient Physician Prices Paid
Jamie Godwin, Daniel Arnold, Brent Fulton, and Richard Scheffler collaborated and studied the relationship between hospital ownership of physician organizations and prices in “The Association between Hospital-Physician Vertical Integration and Outpatient Physician Prices Paid by Commercial Insurers: New Evidence“. The widespread acquisition of physician practices by hospitals and health systems—a practice known as vertical integration—has been the most significant shift in healthcare provider market structure over the past decade. Market-level hospital-physician vertical integration was positively associated with physician prices for select specialties but was not associated with changes in the use of facility-fee billing. The authors call for more research to be done on quality effects of hospital-physician vertical integration.
- Petris 2020 Newsletter
The Petris Center has continued to guide public policy and analyze healthcare markets despite not meeting in-person. To see our accomplishments, we have released our 2020 Newsletter!
- FTC Microeconomics Conference Features Paper by Daniel Arnold
Daniel Arnold and Christopher Whaley’s paper, “Who Pays for Health Care Costs? The Effects of Health Care Prices on Wages“, was presented at the Thirteenth Annual FTC Microeconomics Conference. It explores the relationship between rising health care costs and slower wage growth for employer-sponsored insurance.
Using hospital market structure and price assessed for Metropolitan Statistical Areas, they find hospital mergers lead to a $521 increase in hospital prices, a $579 increase in mean hospital spending, and a $638 reduction in wages. The results support that hospital mergers affect consumers through lower wages. Both the direct cost of medical care and the indirect cost to wages and should be considered in health care reforms.
Hear Chris Whaley present the paper on Day 1 (PM) of the conference.