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Do hospital mergers reduce costs?
Abstract
Proponents of hospital consolidation claim that mergers lead to significant cost savings, but there is little systematic evidence backing these claims. For a large sample of hospital mergers between 2000 and 2010, I estimate difference-in-differences models that compare cost trends at acquired hospitals to cost trends at hospitals whose ownership did not change. I find evidence of economically and statistically significant cost reductions at...
Paper Details
Title
Do hospital mergers reduce costs?
Published Date
Mar 1, 2017
Journal
Volume
52
Pages
74 - 94
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