Universities approve hospital merger

Great Falls Hospital Merger

At the request of counsel for the Montana Department of Justice (the "Department"), National Economic Research Associates, Inc. (NERA) has reviewed the public record relating to the application of two Great Falls hospitals to receive a Certificate of Public Advantage (COPA) from the State of Montana. This record generally includes the materials, dated October 2, 1995, that were submitted by the...

Simulating Hospital Merger Simulations*

Several recent papers estimate discrete choice models in hospital markets, and then use those estimates to generate a hospital-by-hospital measure of market power. They then use these market power measures as an independent variable in hospital price regressions. The estimated relationship between market power and price is then used to simulate the effects of mergers. In this paper, we seek to ...

Hospital Merger Benefits: Views from Hospital Leaders and Econometric Analysis

Hospital merger assessment in South Africa

LHG first acquired a 25% stake in JMH in 1997, and increased this to 49.4% in 2003. The remaining 50.6% of equity in JMH was owned by doctors who work, or have worked, in JMH’s hospitals. In 2011, LHG increased its stake to 70%, making it the majority owner. Prior to this, the companies had been separate entities, with JMH having a separate board that did not report to LHG (although LHG had rep...

Price effects of a hospital merger: heterogeneity across health insurers, hospital products and hospital locations

In most studies on hospital merger effects, the unit of observation is the merged hospital, whereas the observed price is the weighted average across hospital products and across payers. However, little is known about whether price effects vary between hospital locations, products and payers. We expand existing bargaining models to allow for heterogeneous price effects and use a difference-in-d...