Hospital M&A: The Effects on Quality, Cost, and Revenue
Open Access
Author:
Mollo, Allie
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Stefan M Lewellen, Thesis Supervisor Brian Spangler Davis, Thesis Honors Advisor
Keywords:
M&A Hospitals Healthcare Mergers Acquisitions Deals Finance Patient Care
Abstract:
This paper examines the effects of mergers and acquisitions (M&A) on target hospitals’ quality of care, costs, and revenue comparative to non-target hospitals. I find that quality of care is moderately improved and both patient-associated cost and revenue are modestly reduced in target hospitals following deal activity. My results contrast with much of the literature on hospital M&A but are consistent with Sheen (2014)’s finding that M&A transactions lead to higher product quality and reduced prices.
