Impact of Cross-Market Mergers on Healthcare Prices and Quality

Sponsor

Laura and John Arnold Foundation

Principle Investigator

Richard Scheffler, PhD

Project Period

July 1, 2020 – June 30, 2022

About the Project

Our joint study with UC Hastings addresses exceptional features of consolidation in the healthcare market. Do cross-market mergers result in higher prices without a proportional increase in health care quality? We will propose areas of contract terms be examined to bring the price of health care to a sustainable level for antitrust regulators and courts to evaluate proposed cross-market mergers. This project includes:

  • An analysis of cross-market healthcare merger trends as hospitals and physician organizations are merging both horizontally and vertically;
  • A review of both the law and economics of the cross competition for insight into criteria to evaluate proposed cross-market mergers;
  • An empirical estimation of  cross-market mergers on healthcare prices and quality;
  • A workshop for others to critically review key criteria for determining the conditions that give rise to an anticompetitive cross-market merger.

Workshop

“The Role of States in Promoting Competition in Healthcare: A Legal and Economic Analysis” – to be held virtually in November 2020

We will convene to bring together economists and legal experts to analyze and evaluate our empirical findings in hopes of identifying conditions that give rise to an anticompetitive cross-market merger.