Local Hospital Competition in Large Metropolitan Areas

Larry M. Manheim, Gloria J. Bazzoli, Min‐Woong ‐W Sohn

Research output: Contribution to journalArticlepeer-review

26 Scopus citations


This paper uses origin‐destination data to define geographic local hospital markets in large metropolitan statistical areas (MSAs). Results support past findings of service rather than price competition, with negative‐cost Herfandahl‐Hirschman indexes relationships at the market level (and sub‐MSA level) and with profit margins negatively related to hospital market competition. The effects of total (direct plus indirect) market competition are unchanged between 1983 and 1988, precisely estimated, robust to estimation techniques, and unaffected by whether the number of direct competitors is included as an explanatory variable.

Original languageEnglish
Pages (from-to)143-167
Number of pages25
JournalJournal of Economics and Management Strategy
Issue number1
StatePublished - Mar 1994

ASJC Scopus subject areas

  • General Business, Management and Accounting
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation


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