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Vertical Integration and Cream Skimming of Profitable Referrals: The Case of Hospital-Owned Skilled Nursing Facilities
By: David M. Cutler, Leemore Dafny, David C. Grabowski, Steven Lee and Christopher Ody
We examine whether vertical integration of hospitals and skilled nursing facilities (SNFs) could lessen competition by foreclosing rival SNFs’ access to lucrative referrals. We find that it could: among integrated providers, a one percent increase in SNF reimbursement... View Details
Keywords: Antitrust; Competition; Monopoly; Vertical Integration; Customer Value and Value Chain; Health Industry; United States
Cutler, David M., Leemore Dafny, David C. Grabowski, Steven Lee, and Christopher Ody. "Vertical Integration and Cream Skimming of Profitable Referrals: The Case of Hospital-Owned Skilled Nursing Facilities." American Economic Journal: Economic Policy (forthcoming).
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