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Hospital Competition and Bargaining: Higher Prices or Greater Innovation?
March 5, 7:00 PMFree
In recent years, many hospitals have merged, increasing the concentration of hospital markets and raising concerns about the price and quality of care. How is hospital consolidation affecting the already high health care expenditures in the U.S.? Because hospital competition for privately insured patients occurs through price negotiations between hospitals and insurers, an estimation of bargaining models is a useful tool to understand how hospital and insurer market structure affects prices and outcomes in this sector. This lecture by Gautam Gowrisankaran, Arizona Public Service Professor of Economics at the University of Arizona, analyzes what bargaining models imply about the outcomes of mergers in the hospital sector and how they are affecting the practice of antitrust policy for this sector.
Sponsored by the Department of Economics.