Faculty of Science, Technology and Medicine
Faculty of Law, Economics and Finance
Faculty of Humanities, Education and Social Sciences
Interdisciplinary Centre for Security, Reliability and Trust
Luxembourg Centre for Systems Biomedicine
Luxembourg Centre for Contemporary and Digital History
Luxembourg Centre for European Law
Luxembourg Centre for Socio-Environmental Systems
Does market power increase income inequality? The effect of hospital mergers on physicians’ income
Abstract
We examine the effect of hospital mergers on the income of medical specialists, with a specific focus on how this effect varies across different contractual arrangements between hospitals and medical specialists. We examine the effects of 17 mergers that occurred in the Netherlands between 2011 and 2018. Using administrative data and employing a staggered difference-in-differences empirical approach, we find that hospital mergers increase the income of self-employed hospital physicians by 3.9% while the income of employed hospital physicians remains unaffected. Among the self-employed, mergers lead to significant income increases for men, more senior physicians, and those with the highest incomes prior to the merger. These results are in line with our theoretical model. Furthermore, we do not find significant effects on healthcare and hospital expenditures, hospital admissions and 30-day mortality.
About the Speaker
Martin Salm is Professor of Health Economics and Applied Microeconomics at the Department of Econometrics and Operations Research at Tilburg University. His research interests include economic incentives in the healthcare sector, regional disparities in healthcare costs, and the relationship between socioeconomic status and health. He received a degree in economics from the University of Mannheim in 2001 and a Ph.D. in Economics from Duke University in 2006. His research has been published in leading journals such as the Journal of the European Economic Association, the Economic Journal, Journal of Public Economics, and Journal of Health Economics.
Language
English
This is a free seminar. Registration is mandatory
Supported by the Fond National de la Recherche,
Luxembourg (19441346)