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STICERD Industrial Organisation Seminars

Vertical Integration and Plan Design in Healthcare Markets

Benjamin Vatter (MIT)

Monday 25 November 2024 16:00 - 17:30

Many of our seminars and public events this year will continue as in person or as hybrid (online and in person) events. Please check our website listings and Twitter feed @STICERD_LSE for updates.

Unless otherwise specified, in-person seminars are open to the public. Please ensure you have informed the event contact as early as possible.

Those unable to join the seminars in-person are welcome to participate via zoom if the event is hybrid.


About this event

We measure the impacts of vertical integration between insurers and hospitals. In the Chilean market, where half of private hospital capacity is vertically integrated, integration increases inpatient care spending by 6 percent and decreases consumer surplus and total welfare. Integrated insurers offer generous coverage at integrated hospitals, limited access to rival hospitals, and lower premiums. Competition for enrollees forces non-integrated insurers to provide additional coverage to high-quality non-integrated hospitals, resulting in plan networks that limit hospital competition. Whereas vertical integration reduces double marginalization, skewed cost-sharing structures-and their effect on hospital competition-more than compensate, leading to an overall negative welfare impact.

Industrial Organisation seminars are held on Mondays in term time at 16:00-17:30, in person in SAL 3.05, unless specified otherwise.

Seminar organiser: Alessandro Gavazza.

For further information please contact Sadia Ali: s.ali43@lse.ac.uk.

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