May 20, 2004

Dranove, Satterthwaite receive funding for hospital merger research

David Dranove, Walter J. McNerney Distinguished Professor of Health Industry Management, and Mark Satterthwaite, A.C. Buehler Professor in Hospital and Heath Services Management, have received a $240,433 grant from the Robert Wood Johnson Foundation.

Dranove and Satterthwaite, professors of management and strategy, will use the two-year grant to continue their ongoing research in developing new tools for antitrust analysis to show how hospital mergers affect prices for consumers.

“Our initial research was in one market, and the grant will allow us to broaden our base by studying 15 markets throughout the country to provide valid predictions of how these mergers affect consumers,” Dranove said.

Depending on the outcome of the research, Dranove said, courts may use their findings in considering whether to reverse some hospital mergers of the ’90s or to block future mergers.