The effect of physician-hospital affiliations on hospital prices in California

Federico Ciliberto*, David Dranove

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

59 Scopus citations


During the 1990s, a record number of U.S. hospitals entered into some form of vertical combination with physicians. During the same period, many integrated hospital-physician arrangements broke up. Using data from California, we investigate whether such vertical activity affected hospital pricing. We find that neither integration nor disintegration was associated with significant changes in prices. Integration among rural hospitals is associated with large price decreases, but the sample of such hospitals is small.

Original languageEnglish (US)
Pages (from-to)29-38
Number of pages10
JournalJournal of Health Economics
Issue number1
StatePublished - Jan 1 2006


  • Hospital
  • Joint venture
  • Physicians
  • Vertical integration

ASJC Scopus subject areas

  • Economics and Econometrics


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