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The anatomy of a hospital system merger: the patient did not respond well to treatment

Gaynor, Martin, Sacarny, Adam, Sadun, Raffaella, Syverson, Chad and Venkatesh, Shruthi (2022) The anatomy of a hospital system merger: the patient did not respond well to treatment. CEP Discussion Papers (1845). London School of Economics and Political Science. Centre for Economic Performance, London, UK.

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Abstract

Despite the continuing US hospital merger wave, it remains unclear how mergers change, or fail to change, hospital behavior and performance. We open the "black box" of hospital practices through a mega-merger between two for-profit chains. Benchmarking the merger's effects against the acquirer's stated aims, we show they achieved some of their goals, harmonizing electronic medical records and sending managers to target hospitals. Post-acquisition managerial processes were similar across the merged chain. However, these interventions failed to drive detectable gains in performance. Our findings demonstrate the importance of organizations for merger research in health care and the economy more generally.

Item Type: Monograph (Discussion Paper)
Official URL: https://cep.lse.ac.uk/_new/publications/discussion...
Additional Information: © 2022 The Authors
Divisions: Centre for Economic Performance
Subjects: R Medicine > RA Public aspects of medicine
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HB Economic Theory
JEL classification: I - Health, Education, and Welfare > I1 - Health > I10 - General
M - Business Administration and Business Economics; Marketing; Accounting > M1 - Business Administration > M12 - Personnel Management
Date Deposited: 11 Jan 2023 11:30
Last Modified: 15 Sep 2023 23:58
URI: http://eprints.lse.ac.uk/id/eprint/117852

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