The effect of hospital acquisitions of physician practices on prices and spending

The impact of integration on outpatient chemotherapy use and spending in Medicare

“…Previous studies focused on prices as the main mechanism by which integration increases spending. The results consistently show that integration raises prices (Baker et al, 2014;Capps et al, 2018;Carlin, Feldman, & Dowd, 2017). Our analysis offers evidence of another potentially important mechanism-changes in treatment mix and quantity.…”

“…However, economic models focusing on providers' strategic motives predict that integration increases providers' market power and restricts market competition, leading to higher prices and spending. This prediction is supported by empirical studies of the relation between integration, service prices, and spending in the private sector (Baker, Bundorf, & Kessler, 2014;Carlin, Feldman, & Dowd, 2017;Capps, Dranove, & Ody, 2018).…”

Spending per Medicare Beneficiary Is Higher in Hospital‐Owned Small‐ and Medium‐Sized Physician Practices

“…Other studies, in a variety of settings, suggest that hospital ownership of practices is associated with higher total spending per patient (McWilliams et al. ; Baker, Bundorf, and Kessler ; Robinson and Miller ; Capps, Dranove, and Ody ; Neprash et al. ).…”

“…Our findings add to-and are generally consistent with-the small body of literature on the comparative performance of hospital-owned versus physician-owned practices. Other studies, in a variety of settings, suggest that hospital ownership of practices is associated with higher total spending per patient (McWilliams et al 2013;Baker, Bundorf, and Kessler 2014;Robinson and Miller 2014;Capps, Dranove, and Ody 2015;Neprash et al 2015).…”

Physician Market Structure, Patient Outcomes, and Spending: An Examination of Medicare Beneficiaries

“…Reimbursement for patients seen in hospitals are substantially higher, giving vertically integrated systems an incentive to shift where physicians provide care (Baker, Bundorf, and Kessler ; Neprash et al. ; Capps, Dranove, and Ody ; Dranove and Ody ; Koch, Wendling, and Wilson ).…”