Economics Research Seminar

Insurer Competition and Negotiated Hospital Prices

We measure the impact of increased health insurer competition on negotiated hospital prices using detailed 2004 California claims data. We develop a theoretical bargaining model to motivate our empirical analysis, and use the competitiveness of Kaiser Permanente, a large vertically integrated insurer, in a hospital's market as a measure of insurer competition. We fi nd that increasing competition reduces hospital prices on average, but that the most attractive hospitals can leverage increased competition to negotiate higher rates. This bargaining e ffect creates incentives
for further hospital consolidation and implies that hospital market power can impact
prices even in markets with many insurers.

Please join the Economics Department for a research seminar.  This event is open to all Case Western Reserve University faculty, Ph.D. students, economic majors and minors, and those interested in economics research.
 
Contact Information:

Teresa Kabat
teresa.kabat@case.edu
216.368.4110

Tuesday, May 13, 2014 from 10:30 a.m. to noon
Peter B. Lewis Building
11119 Bellflower Road, Room 118
Cleveland, OH 44106-7235
United States
Speaker(s): Robin Lee, Ph.D., NYU Stern School of Business
Sponsored by: Economics Department
Insurer Competition and Negotitated Hospital Prices

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