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PubMed · 10180497

Integrated delivery systems. Evolving oligopolies.

T A Malone
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Abstract

The proliferation of Integrated Delivery Systems (IDSs) in regional health care markets has resulted in the movement of these markets from a monopolistic competitive model of behavior to an oligopoly. An oligopoly is synonymous with competition among the few, as a small number of firms supply a dominant share of an industry's total output. The basic characteristics of a market with competition among the few are: (1) A mutual interdependence among the actions and behaviors of competing firms; (2) competition tends to rely on the differentiation of products; (3) significant barriers to entering the market exist; (4) the demand curve for services may be kinked; and (5) firms can benefit from economies of scale. An understanding of these characteristics is essential to the survival of IDSs as regional managed care markets mature.

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Costs and Cost AnalysisDelivery of Health Care, IntegratedEconomic CompetitionHealth Care SectorHealth Facility MergerMarketing of Health ServicesModels, EconomicUnited StatesJournal Article

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T A Malone. Integrated delivery systems. Evolving oligopolies.. https://pubmed.ncbi.nlm.nih.gov/10180497/

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