Title

Health Insurer Market Power and Primary Care Consolidation

Document Type

Article

Publication Date

10-2014

Publication Title

Economics Letters

DOI

10.1016/j.econlet.2014.08.005

Abstract

This paper analyzes how health insurance market concentration impacts the market structure of primary care physicians. In more concentrated insurance markets, physicians are found to work in larger practices and their practices are more likely to have a hospital with an ownership interest. Physicians are also less likely to report being in a competitive physician market, consistent with practice consolidation. Our results suggest that consolidation in insurance markets impacts the competitive structure of physician markets.