The changing effects of competition on non-profit and for-profit hospital pricing behavior

Article Abstract:

The California hospital discharge data from 1986-1994 was analyzed using time-series cross-sectional methods to determine the effects of competition on the pricing behavior of non-profit and for-profit hospitals. Results show that the impact of market concentration on hospital pricing behavior steadily increased. Even non-profit hospitals in less competitive areas have significantly higher prices than those in more competitive areas by 1994.

Competition (Economics)

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The effects of market structure and bargaining position on hospital prices

Article Abstract:

The influence of market structure and bargaining position on hospital prices was investigated. The results showed that greater competition among hospitals results in lower prices. In contrast, as the importance of hospitals to preferred provider organizations increases, price significantly increases. The use of counties to define markets results in an erroneous estimate of the price-increasing effects of corporate mergers.

Accident and health insurance, Preferred provider organizations (Medical care)

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Competition and pricing by non-profit hospitals: reassessment of Lynk's analysis

Article Abstract:

The study by William J. Lynk regarding the association of antitrust laws with mergers of non-profit hospitals is problematic because the methods used generated biased estimates. Lynk's analysis of 1988-1989 data from California revealed that a merger of non-profit hospitals would result to lower hospital prices. However, after correcting some possible biases, it was found that Lynk's findings were untenable.

Acquisitions and mergers, Criticism and interpretation, Lynk, William J.

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