Logo image
Consolidations and closures: an empirical analysis of exits from the hospital industry
Journal article   Peer reviewed

Consolidations and closures: an empirical analysis of exits from the hospital industry

Teresa D Harrison
Health economics, v 16(5), pp 457-474
May 2007
PMID: 17031782

Abstract

Length of Stay Models, Econometric Hospital Bed Capacity United States Humans Proportional Hazards Models Health Services Needs and Demand - economics Health Services Research Empirical Research Health Facility Merger - economics Regression Analysis Health Facility Merger - statistics & numerical data Health Facility Closure - economics Health Facility Closure - statistics & numerical data Efficiency, Organizational
This paper investigates the pre-exit characteristics of hospital mergers, acquisitions, and closures. We estimate competing risk hazard models using an 18-year national data set that spans the wave of closures in the 1980s and of mergers in the 1990s. Evidence shows that weak productivity of the hospital is a strong determinant for closures while competitive pressures are more influential in the decision to consolidate. Thus, increased market power, relative to cost reductions, appears to play a larger role in the merger decision. Our results also provide insight into possible correlations between mergers and closures.

Metrics

12 Record Views
23 citations in Scopus

Details

UN Sustainable Development Goals (SDGs)

This publication has contributed to the advancement of the following goals:

#3 Good Health and Well-Being

InCites Highlights

Data related to this publication, from InCites Benchmarking & Analytics tool:

Web of Science research areas
Economics
Health Care Sciences & Services
Health Policy & Services
Logo image