Take Action

Home | Faculty & Research Overview | Research

Research Details

The Effect of Physician-Hospital Affiliations on Hospital Prices in California, Journal of Health Economics

Abstract

The 1990s saw considerable integration of hospitals and physician practices, as well as some dissolution of integrated entitites. Using data from California, we investigate whether such vertically integration activity affected prices charged to managed care payers. We find that hospitals that form highly integrated structures generally reduced prices. Hospitals did not change prices upon dissolution, however. The only possible evidence of price increases occurred among the four rural hospitals in our sample. Overall, our findings are inconsistent with established economic explanations for vertical integration, and are also inconsistent with the empirical work of Cuellar and Gertler [2002], who find systematic evidence that hospitals increased their prices after vertically integrating with physicians.

Type

Article

Author(s)

Federico Ciliberto, David Dranove

Date Published

2006

Citations

Ciliberto, Federico, and David Dranove. 2006. The Effect of Physician-Hospital Affiliations on Hospital Prices in California. Journal of Health Economics. 25(1): 29-38.

KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more

Take Action