Predicting the price effects of hospital mergers An evaluation of the willingness-to-pay technique

Background A variety of forces are leading many hospitals to seek opportunities to join integrated health care systems. Declining reimbursement from government programs and increasing cost sensitivity of employers, along with declining demand for inpatient hospital services, are contributing factors. Accommodating the more fundamental change from fee-for-service reimbursement toward “accountable care” and “population health management” requires scale to bear risk and develop the necessary health information technology and other infrastructure.