Health Policy and the Creation, Distribution and Destruction of Value in the Changing Health Care Market

Award Year: 1995	Investigator: J.B. Silvers	Budget: $223,751	Categories: Healthcare Organization, Healthcare Markets
Abstract: Dr. Silvers seeks to better understand what is happening and why in the changing health care environment by following the dollars. He: 1) identifies critical ownership and capital transactions in health care (sales, mergers, and discontinuance of operations); 2) estimates resulting changes in economic value; and 3) assesses the underlying environmental and policy drivers behind industry restructuring. Value-changing transactions are identified by screening private credit reports for health care organizations and utilizing public data of large for-profit firms. Qualifying hospitals, physician practices, nursing homes, home health organizations and HMOs located in four target states are compared with a control group for statistical characteristics, resulting changes in gross economic value, and apparent linkages to environmental and health policy factors. In a refined analysis of market value, selected firms are studied through their public filings and interviews with key executives. Case studies are developed on representative entities in each sector and target state.