A RETROSPECTIVE ANALYSIS OF THE EFFECTS OF THREE 2013 PENNSYLVANIA HOSPITAL ACQUISITIONS

Open Access
Author:
Saleeby, George Anthony
Area of Honors:
Economics
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • Robert Clifford Marshall, Thesis Supervisor
  • Russell Paul Chuderewicz, Honors Advisor
Keywords:
  • Health care
  • Hospital Mergers
  • Mergers and acquisitions
Abstract:
In the years since 2010, the US has experienced record levels of consolidation in the hospital industry. This paper examines the impacts of three specific Pennsylvania hospital acquisitions from 2013 on prices, markups for specific services, and quality of care. Difference-in-differences methodology is used to compare trends in the three acquired hospitals to a control group of hospitals located throughout Pennsylvania. My findings provide evidence that these three transactions resulted in higher markups on electrocardiograms (EKGs) and computerized tomography (CT) scans, as well as a decrease in quality of care, indicated by inpatient survey results. Results of price level regressions are insignificant, and no relationship between average price levels and the acquisitions is discernible.