Brooks J, Dor A & Wong H (1997)

‘Hospital-Insurer Bargaining: An Empirical Investigation of Appendectomy Pricing’

Journal of Health Economics 16, pp.417-434.

• Estimates the relative bargaining power of health insurers vs. hospitals, using panel data on appendectomy cases.

• Greater hospital competition reduces hospital bargaining power and leads to greater price discounts.
• On average neither hospitals nor firms have complete bargaining power, but hospitals have relatively more than firms.
• Hospital bargaining power is diminishing (during the sample period).
  

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