版权说明:本文档由用户提供并上传,收益归属内容提供方,若内容存在侵权,请进行举报或认领
文档简介
WhytheUSEconomyNeedsMoreConsolidation,NotLess
TRELYSALONG|MAY2024
Largerfirmsaregenerallymoreproductivebecauseofscaleeconomies,butsomeU.S.industriesstillhavetoohighashareofsmallfirms.Policymakersshouldencourage,notdiscourage,greaterconsolidationintheseindustries.
KEYTAKEAWAYS
.Largefirmsaregenerallymoreefficientthansmallerones.Asanindicatoroftheirgreaterproductivity,firmswith500ormoreemployeeshavehigherreceiptsperworkerthandofirmswithfewerthan500employeesin710of938six-digitNAICSindustries.
.Mostofthe228industriesinwhichsmallerfirmsaremoreproductivearethosewithlittleabilitytogainscaleeconomies(e.g.,furniturerepair,foodtrucks,etc.).
.Consolidationcanboostindustry-wideproductivitybyensuringthatmoreproductionisconductedbylargerfirmswithhigherproductivity.
.Someindustrieswouldbenefitfromgreaterscalebutstillhavelargesharesofsmall
firms.Theyincludeindustriesinwhichgovernmentpolicyhassignificantinfluence,suchasbanking,construction,doctor’soffices,farming,andtelecommunications.
.Despitetheefficiencygainsconsolidationcanbring,state,local,andfederalgovernmentpoliciescandiscouragegreaterconsolidation.Policymakersneedtomodifyor,ifpossible,removethesepolicies.
.Overall,it’stimetobalancetheagendaofseekingmorecompetitionwithanequallycompellingandnotmutuallyexclusivegoalofseekingmoreconsolidationandhigherproductivity.
INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATION|MAY2024PAGE
2
CONTENTS
KeyTakeaways 1
Introduction 2
EconomiesofScaleandProductivity 4
TheRoleofConsolidationinImprovingEfficiency 5
Examining12Industriesin5Sectors 7
Banks 7
Physician’sOffices 10
Construction 13
Farming 17
Telecommunications 20
PolicyRecommendations 23
Conclusion 24
Endnotes 25
INTRODUCTION
Largerfirmsarethekeytoproductivitygrowth,as,inmostindustries,largefirmsaremore
productivethantheirsmallercounterpartspartlybecauseofwhateconomiststerm“economiesofscale.”Insomeindustries,thereseemtobefewscaleeffects.Forexample,it’shardtoimaginewhyamotorvehicletowingcompanywith5,000workerswouldbemoreefficientthanonewithonly5.Andmanyindustriesalreadyhaveachievedclosetooptimalscale—although,ofcourse,technologyisconstantlychanging,whichisonereasonwhycompaniesmaywanttomergeor
divest.Yet,therearecertainindustriesthatappeartobeabletobenefitfromscaleeconomies
buthavenotadequatelydoneso,inpartbecausegovernmentpolicyeitherrestrictsconsolidationorrewardsfragmentation.
Althoughmostpoliciesarewell-intentioned,manyhaveanunintendednegativeimpactonfirm
growthandconsolidation.Forexample,whilebuildingcodesprotectusfromfaulty
infrastructure,thelackofstandardizationacrosslocalitiesandstatesmeansthatfirmsare
discouragedfromexpandingtonewareas,astheywouldhavetolearnanewsetofcodes,whichwouldincreasetheircosts.Asaresult,firmsinmanyindustriesfacebarrierstoreachingscaleeconomiesandgreaterefficiency.ThisisconcerningbecausetheUnitedStates’nonfarm
businesslaborproductivitygrowthratehasbeenbelowaveragesince2005,leadingtoslowereconomicgrowth,stagnantwages,andreducedcompetitiveness.(2020wasananomalybasedonCOVIDreductionsinemploymentinlowproductivityindustries.)(See
figure1
.)Increasedconsolidation,leadingtogreaterscaleeconomies,couldplayaroleinreversingthistrend.
INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATION|MAY2024PAGE
3
5%
4%
3%
2%
1%
0%
-1%
-2%
Figure1:Year-over-yeargrowthinU.S.laborproductivity
1
19941998200220062010201420182022
Yet,consolidationisdemonizedbyneo-Brandeisiansandotherproponentsofthe“smallisbeautiful”antitrustschool,makingitmuchhardertojustifymodifyingpoliciesthatlimitconsolidation.Indeed,theyhaveallbutshunnedtheveryideathatconsolidationcanbe
beneficialand,accordingly,theeconomicconsensusthatsomefirmscanbenefitfromgreater
scale—allinordertosupporttheirclaimthatasmallbusinesses-dominatedeconomyistheidealone.AsRobertAtkinsonandMichaelLindhaveasserted:
Neo-Brandeisiansgooutoftheirwaytodenytheveryexistenceofscale
economiesbecausetheyknowthatthisreality,morethananyother,undercutstheirclaimthatbreakingupbigcompanieswouldbegoodfortheeconomy.MattStoller[attheAmericanEconomicLibertiesProjectandOpenMarketsInstitute],reflectsthatviewwhenhetweets,“I’mincreasinglyconvincedthebiggestconinbusinesshistoryisthenotionof‘economiesofscale.’”
2
Troublingly,theBidenadministrationhassubscribedtotheviewthatsmallfirmsaretheidealoutcomeformostindustries.Inadditiontoappointingneo-BrandeisiansandtheiralliestotoppositionsattheFederalTradeCommission(FTC)andDepartmentofJustice(DOJ),the
administrationstatedinitsExecutiveOrderonPromotingCompetitionintheAmericanEconomythat“theproblemofconsolidationnowspansthesesectorsandmanyothers”—essentially
demonizinggreaterconsolidationwithoutconsideringthebenefitsitcouldbringtoatleastsomeindustries.
3
Yet,asthebroadeconomicconsensusshows,manyindustriesdobenefitfrom
greaterscaleandconsolidation.
4
Thus,policymakerssubscribingtothe“smallisbeautiful”doctrineneedtoreconsiderhowtheyviewindustryconsolidation.
INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATION|MAY2024PAGE
4
Policymakersthusneedtopromotegreaterconsolidationinindustriesthatbenefitfromlarge
scaleeconomiesandthathavenotyetachievedsuchscale.Thebestwaytodothatistomodifyor,ifpossible,removegovernmentregulations—atthelocal,state,andfederallevels—that
disincentivizeconsolidationorpromotefragmentation.Thisisnecessarybecausedoingsowouldallowefficientfirmstostayinthemarketandgrowwhileencouragingthelessefficientonesto
eithermergeorexitthemarket,boostinganindustry’sproductivity.Asastartingpoint,theBidenadministrationshouldfollowuponitspriorexecutiveorderoncompetitionwithanewone,suchasan“ExecutiveOrderonRemovingBarrierstoConsolidationintheAmericanEconomy”that
woulddoatleasttwothings.First,suchanorderwouldcallforregulatorysizeneutralityto
minimizebiastowardfirmsofaspecificsize.Second,itwouldexamineindustriesandpolicieswiththegoalofeliminatingpoliciesandregulationsthatkeepindustriestoofragmented.
Thisreportshows1)thatlargerfirmsintheeconomyaregenerallymoreefficientduetoscaleeconomies,2)howconsolidationcanhelpsmallerfirmsmaximizeeconomiesofscale,and3)
how12industriesin5sectors(banking,doctor’soffices,construction,farming,and
telecommunications)facebarrierstoconsolidationbecauseofgovernmentregulations.Foreachofthefivesectors,itsuggestswhatgovernmentscandotoenablemarket-basedconsolidation.
ECONOMIESOFSCALEANDPRODUCTIVITY
Thevastmajorityofindustriesintheeconomyenjoyscaleeconomiesfortworeasons.Thefirstisthatmostindustrieshavenotinsignificantfixedcoststhatdonotgrowasoutputincreases(a
factthatisparticularlytrueinthehightechnologymarketsthatdriveinnovation).Firms
producingasmalloutputvolumewillfacehigheraveragecostsbecausetherearefewerunitsofoutputtospreadoutfixedcosts.However,asoutputincreases,theaveragecostofaunitof
outputgoesdownbecausefixedcostsremainstabledespitecostsgrowingwithrevenues.For
instance,itcanbecheaperperunitofoutputtoproduce100,000itemsthan100because
specializedmachinescanbeintroduced.Second,everyadditionalunitofproductionusually
declinesincostasworkersgainexperience.Thesecostdeclinescontinueuntilthefirmreachesanefficientscalewhereingreaterefficienciesareoutweighedbyrisinginefficienciesfromsize(suchasgreatercoordinationcosts).
5
Theefficientscalevariesbyindustryforanumberof
reasons,soitisdifficultforgovernmentstodeterminethe“proper’limit.
However,largerfirmsaregenerallymoreefficientthansmalleronesinthevastmajorityof
industriesthroughouttheeconomy.Inananalysisoflargefirmswithover500employeesfrom938six-digitNAICSindustries,wefoundthatthereceiptsperworkerarehigherthanthe
industryaveragefor710industries.
6
Incomparison,theremaining228industrieshavereceiptsperworkerthatarelessthantheindustryaverage,althoughsomeofthiscouldbearesultof
theircharginglowerprices.
7
These228industrieswithlowerreceiptsperworkerthanthe
averagetendtobeindustrieswhereinmassivescaleisunnecessarytoachievethelowestcosts.Forexample,largenailsalons(NAICS:812113)havereceiptsperworkerof$40,854comparedwiththeindustryaverageof$64,131.
8
Nailsalonshavefewfixedcostsandlittlereturnsfrom
scale,meaningthattheiraveragecostswillonlydeclinebyaminusculeamountafterservinganumberofcustomers.Infact,themarginalcostofservinganadditionalcustomermayincreaseifanailsalonbecomestoolargeforidiosyncraticreasons,suchasnailtechniciansgettinginthewayofoneanother.Inotherwords,someindustriesareefficientwithsmallfirmspartlybecausetheydonotneedlargeoutputswithmanyworkersinordertomaximizescaleeconomies.
INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATION|MAY2024PAGE
5
Butmostindustrieslikelyneedlargeoutputstomaximizescaleeconomies.In2017,thereceiptoflargefirmsintheaverageindustrywas21.7percenthigherthantheaveragefirminthe
economy,or$353,619,comparedwiththeaveragefirm’s$290,617.
9
Smallfirms’receiptsperworkerwere24percentlowerthanthatoftheaveragefirm.
10
(See
figure2.)
Figure2:Averagereceiptsperemployeeacross938six-digitNAICSindustries
11
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Largefirms
Allfirms
Smallfirms
THEROLEOFCONSOLIDATIONINIMPROVINGEFFICIENCY
Consolidationiskeytofirmsinindustrieswithahighminimumefficientscaleasawaytomaximizeefficiency.Theprocessisasfollows:
.First,consolidationintheformofmergersandacquisitions(M&A)oranincreaseinmarketsharefromonefirmtoanotherallowsfirmstobecomelarger.
.Asaresultoftheirgrowthinsize,thesefirmsacquirealargershareofthemarketandcanbenefitfromgreatereconomiesofscaletolowermarginalproductioncosts(or
increasedeconomiesofscopeortheeliminationofdoublemarginalizationinconglomerateorverticaltransactions).
12
.Finally,asthesefirmscontinuetogrow,theywilleventuallyreachapointwheretheir
unitcoststoproduceanadditionalunitofgoodscannolongerdecrease.
13
Atthatpoint,thefirmhasmaxedoutanyefficiencygainsfromincreasingscale.
Insum,consolidationhelpsfirmsmaximizetheirefficiencyfromscaleeconomiesbybecominglarger.(See
figure3
.)
INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATION|MAY2024PAGE
6
Figure3:Theprocessofincreasingefficiencythroughconsolidation
Greatermarketshare
lowersproduction
coststhrough
economiesofscale
M&Asorcapturingothers’marketshareallowsfirmstogrow
Unitcostsdecrease
untilfirmsreach
maximumefficiency
Whenconsolidationincreasesafirm’sefficiencybyachievingsignificantscale,itceterisparibusincreasestheindustry’sefficiencyinpartialequilibrium.ThisiswhyM&Aisgenerallybeneficialtofirmsandindustries.Whenfirmsmergeoracquireanotherfirm,theycanleveragescale
economiesandreducecoststhroughsynergies,suchasbycombiningtheircoreknowledge.
14
Forexample,twostoresneedseparateaccounting,advertising,andpurchasingservices,butifthesetwostorescombine,theycanuseasinglesetofservicesandworkerstoservetwocustomers,
therebyreducingtheoverallcostsofsellingaunitofgoods.Moreover,ifthesetwostoreshavespecialprocessesthatmaketheirindividualprocessesefficient,theycanalsosharethisknow-how,furtherincreasingthemergedstore’sefficiency.Asaresult,amergercreatesincentivestoreducecostsforfirmsand,additionally,improvethequalityofafirm’sserviceorgoods.
15
Thereisanaddedreasontofocusonthisissueandthatistheroleofinformationand
communicationstechnology(ICT).ResearchhasshownthatadoptionofICTisakeydriverof
firmproductivity.However,asarecentstudybytheU.S.CensusBureaushows,ICTadoptionispositivelycorrelatedwithfirmsize.
16
Forexample,10timesmorelargefirmsadoptedartificialintelligence(AI)thandidsmallfirmsin2020.Onereasonforthisisthereareoftensomewhathighfixedcostsrelativetomarginalcostsforinformationtechnology(IT)andsoftware,and
thereforetheeconomicsofadoptionworkbetterforlargerfirms.
AsfirmefficiencyincreasesfromgreaterM&A,anindustry’sproductivitywillceterisparibusalsorise.ThisisbecauseM&Aredistributesresourcesbetweenfirmssothatthemoreefficient,
acquiringfirmwillbeabletoreducecosts,chargelowerprices,andcreatecompetitivepressuresinthemarketthatdriveoutless-efficientfirms.Indeed,astudybyJoelDavidfindsthatM&A
increasesoutputbyabout14percent,and9ofthosepercentresultfromimprovedproductivitydistributionoffirms.
17
DemirerandKaradumancorroboratedthiswithastudyonpowerplants,whichconcludesthat“highproductivityfirmsbuyunderperformingassetsfromlow-productivityfirmsandmaketheacquiredassetsalmostasproductiveastheirexistingassetsafter
acquisition.”
18
Inotherwords,M&A,orconsolidation,increasesefficiencyatthefirmleveland,ultimately,attheindustrylevel.
INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATION|MAY2024PAGE
7
EXAMINING12INDUSTRIESIN5SECTORS
Inthefollowingfivesectors—banking,doctor’soffices,construction,farming,and
telecommunications—largefirmsaremoreproductivebecauseofscaleeconomies,despitethe
factthatgovernmentregulationshavekeptorarekeepingtheindustriesinthesesectors
fragmented.Thisiswhytheaveragefirmsizeforthe11industriesinthesesectorsisbelow500employees,orwhattheSmallBusinessAdministrationdescribesasa“smallbusiness.”
19
(See
figure4
.)Theaveragefarmsize,measuredusinggrosscashfarmincome(GCFI),was$207,756,orwhattheUnitedStatesDepartmentofAgriculture(USDA)wouldconsiderasmallfarm.
20
Figure4:Averagenumberofemployeesinstudiedsectors
21
Residentialremodelers
Newsingle-familyhousingconstruction Newhousingfor-salebuildersNewmultifamilyhousingconstructionCommercialandinstitutionalbuilding
Physician’soffices
Allothertelecommunications IndustrialbuildingconstructionWirelesstelecommunicationscarriersWiredtelecommunicationscarriers
Commercialbanking
050100150200250300350400
Asaresultofthesmallaveragefirmsize,weexplorethesefivesectorsascasestudiesinthefollowingsubsections.Eachofthefivesubsectionswillprovideevidencethat1)anindustry
benefitsfromscaleeconomies,2)largerfirmsaremoreproductive,3)governmentregulationsdisincentivizeconsolidation,andasaresult,4)howtheindustrystillhasahighshareofsmallfirms.
Banks
Largerbanksaregenerallymoreefficientthansmallonesbecauseofscaleeconomies.Studies
havefoundthatthelargerabankgrows,thegreateritsefficiencygainsfromscaleeconomies.
Indeed,studiesbyMcAllisterandMcManus,FerrierandLovell,andHunterandTimmehave
foundthatbankswithover$1billioninassetscouldstillbenefitfromscaleeconomies.
22
Furthercorroboratingthisfinding,bankswithover$1trillioninassetswerefoundtostillhaveincreasingreturnstoscale,meaningthattheycouldstillgrowlargerandbenefitfromscaleeconomies.
23
Incontrast,smallbankswithlessthan$100millioninassetsarefoundtohavesubstantialscale
inefficiencies.
24
Inotherwords,banksbenefitfromlargescaleeconomies.
INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATION|MAY2024PAGE
8
Thishelpsexplaindatafor2017showingthattheaveragelargecommercialbankwithmorethan500employeeshadareceiptperemployeeof$302,358,whichwas2.6percenthigherthantheindustryaverageof$294,594.
25
Incomparison,smallcommercialbankswithlessthan500
employeeshadareceiptperemployeeof$263,435,whichwas10.6percentlowerthantheindustryaverage.
26
(Seefigure5.)
Figure5:Commercialbankingreceiptsperemployee
27
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Largefirms
Allfirms
Smallfirms
Despitelargebanks’greaterproductivity,governmentregulationshavehistoricallykeptbanks
smallbypreventingconsolidation.Asearlyasthe19thcentury,statesandthefederal
governmentalreadyhadaseriesofunitbankinglawsthatpreventedbranchbankinginordertoprotectsmall,localbanksfromcompetitionandconsolidation.Atthestatelevel,somestates
permittedtheirbankstooperatebrancheswithintheirheadquarteredstateorwithinthesame
cities.
28
Yet,otherstatesweremuchmorerestrictiveandforcedtheirbankstooperateoutofa
singlebuilding.
29
Atthenationallevel,bankscouldonlyoperatewithinasinglebuildingfrom
1863to1927.
30
Asaresult,theseunitbankinglawskeptbanksrelativelysmallsincetheycouldonlygrowtoalimitedsizeandreachalimitedshareofthemarket,giventherestrictionontheirlocation.
AlthoughtheMcFaddenActof1927promotedthegrowthofnationalbanks,allowingthemto
operatebranchesaslongastheycompliedwithstatelaws,thebankingindustrywasstill
fragmentedbecause,atbest,eachbank’sgrowthwasstilllimitedtothesizeofitsstate.Indeed,RobertAtkinsonandMichaelLindassertedthattheseprotectionistpoliciesforsmallbanks
resultedinanindustrywith“thousandsoftiny,undercapitalized‘unit’banksownedbymembersofthelocalgentry”whileothernations’industrycomprised“afinancialsystemdominatedbyafewnationalbanks.”
31
Asaresult,whileothernations’branchbankingpolicieseliminatedbankrunsintheearly20thcentury,theUnitedStatescontinuedtofacebankpanicsexacerbatedbyunitbankinglawsuntilthelate20thcentury,whentheinterstatebankinglawswerepassed.
32
INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATION|MAY2024PAGE
9
Moreover,theactalsoraisedwagesinthefinancialindustry.
33
Inotherwords,government
regulationshavehistoricallyunderminedgrowthandconsolidationinbankingthatcouldhaveledtoscaleeconomiesbenefits,fewerbankpanics,andhigherwages.
Yet,despitetheconsequencesofhistoricunitbankinglaws,policymakersstillinsistonkeeping
bankssmallthroughregulationthatdiscouragesconsolidation.InJuly2021,theBiden
administrationsignaledinitsExecutiveOrderonPromotingCompetitionthattheadministrationplansonincreasingscrutinyofbankmergers,writing,“ToensureAmericanshavechoicesamongfinancialinstitutionsandtoguardagainstexcessivemarketpower,theAttorneyGeneral,is
encouraged…toadoptaplan…fortherevitalizationofmergeroversightundertheBakMergerAct.”
34
Inresponsetotheorder,DOJhas“recentlyindicateditwouldtakeamoregranular,wide-rangingapproachtobankmergerreviewsamidincreasedantitrustscrutiny.”
35
Rallyingbehindthesedetrimentalpolicies,neo-Brandeisianantitrustcriticshavewarned,“ThetotalnumberofbanksinAmericahasfallenbysome60percentsince1981,evenasthe
populationhasgrownsubstantially,”implyingthatlargebanksaregainingmoremonopoly
power.
36
Truthbetold,however,C4andC8concentrationratios—thefouroreightfirmswiththehighestmarketshare—forcommercialbanksaredeclining:From2002to2012,theC4andC8concentrationratiosforcommercialbanksfellfrom29.5to25.6andfrom41.0to35.8,
respectively.
37
Tobesure,itisonethingforoneofthetop-fourbanksintheUnitedStatestoacquireanotherbank,whichmayormaynothavecompetitiveimplications.Buthaving500smallandregionalbanksgetboughtupbylargerbanksisunlikelytoreducecompetition.
38
Unfortunately,governmentregulationscontinuetoimpedetheprocessofconsolidationthatencouragesbankstomaximizeeconomiesofscale.Indeed,thesegovernmentregulationsarepartlywhytheindustrystillhasalargeshareofsmallfirmsdespitelargerfirms’greater
efficiency.In2017,only5.6percentofcommercialbanks(281)werelarge,whiletheremaining94.4percent(4,735)weresmall.
39
(See
figure6.)
Figure6:Smallandlargefirms’sharesofthecommercialbankingindustry
40
Smallfirms94.4%
5,016
Firms
Largefirms
5.6%
INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATION|MAY2024PAGE
10
Withsomanysmallbanks,theUnitedStateshasmorebankspercapitathanmostothernations.AsRobertAtkinsonandMichaelLindwrote:
ButbecausemostothernationsneverhadAmerican-styleunitbankinglaws,theyhavealwayshadsignificantlyfewerbankspercapita.In1998Japanhadjust170banks,oronebankforevery747,000people.Canada,widelyviewedashaving
thesafestbankingsystemintheworld,hadonebankforevery1.16million
residents.TheUnitedStateshasonebankforevery58,000people.Andin1999,theshareofdepositsandassetsofthefivelargestUSbankswasjust27percent,comparedto77percentinCanada,70percentinFranceand57.8percentin
Switzerland.
41
Toencouragegreaterefficiency,theBidenadministrationshouldmodifyitsexecutiveorderto
encouragemorebankacquisitionsratherthandiscouragethem.Inthemodifiedexecutiveorder,theadministrationshouldencouragetheFTCandtheDOJAntitrustDivisiontoreviewmergersbetweensmallandregionalbanks—notincludingmergersbythelargestfourorfivelargest
banksnationally—withafocusonhowefficiencygainscanpotentiallyoutweightheincreasesinconcentration.DoingsowouldallowthebankingindustryintheUnitedStatestobenefitfrom
increasingreturnstoscale.AsRobertAtkinsonandMichaelLindasserted:
Butevenwiththenumberofbanksfallingbymorethanhalfinthelastfew
decadesbankeconomiesofscalehavestillnotbeenexhaustedandtheUnitedStatesstillsuffersfromtoomanybanks.AstheFederalReservehasfound,eventhelargestbanksfaceincreasingreturnstoscale…TheFedfound,‘Ourresultssuggestthatcappingbanks’sizewouldincuropportunitycostsintermsof
foregoneadvantagesfromIRS’…Otherstudieshavefoundsimilarresults.
42
Inotherwords,whentheadministrationencouragesgreaterbankconsolidation,itwill
alsoencouragegreaterbankefficiencybecausebankswillbecomelargerandbenefitfromincreasingreturnstoscale.
Physician’sOffices
Largerdoctor’sofficesaregenerallymoreefficientthansmallonesbecauseofscaleeconomies.
Tobestservetheirpatients,doctor’sofficesmustadoptnewtechnologiesandmedical
treatments.However,thecostofimplementingthesenewmethodsisoftenhigh,meaning
doctor’sofficesfacehighfixedcoststoobtainthetoolsneededtotreatpatients.Asaresult,a
largerdoctor’sofficecanservemorepatientstospreadoutitsfixedcostsandloweritsaverage
cost.
43
Indeed,casestudiesof14smallprimarycarepracticesfindthatonlysomeofthese
practicescouldcoverthe$44,000-per-doctorcostofelectronichealthrecordsoftwareafter2.5years,suggestingthatsmalldoctor’sofficesdonothavethescaletoimplementeventhemost
basicefficiency-enhancingtechnologies.
44
ThisiswhyBaker,Bundorf,andRoyaltyconcluded
thatmultispecialtygrouppracticesaremorelikelythansinglespecialtygroups(whichtendtobesmaller)tobenefitfromscaleeconomies.
45
Forexample,OneMedical,alargenationalpracticegrouprecentlypurchasedbyAmazon,hasitsownin-officelaboratoriesforbloodworkandrelatedanalysis.
Thedataisinaccord.In2017,largephysician’sofficeshadareceiptperworkerof$204,931comparedwithaveragesmallfirms’receiptsperemployeeof$190,182.
46
Inotherwords,large
INFORMATIONTECHNOLOGY&INNOVATIONFOUNDATION|MAY2024PAGE
11
$250,000
$200,000
$150,000
$100,000
$50,000
$0
firmswere4.6percentmoreproductivethantheaveragewhilesmallfirmswere3percentlessproductive.(SeeFigure7.)
Figure7:Receiptsperemployeeinphysician’soffices(notincludingmentalhealthspecialists)
47
Smallfirms
Largefirms
Allfirms
Despitethebenefitsthatdoctor’sofficescangainfromscale,governmentregulationsatthe
federalandstatelevelhavehistoricallybeenanimpedimenttothegrowthofdoctor’soffices.Forexample,in1964,NewYorkadoptedtheCertificateofNeed(CON)law,restrictingthe
constructionofnewhospitalsundertheassumptionthattherestrictionofcapitalexpenditurescouldreducethehighcostofhealthcare.
48
AstheAmericanHospitalAssociationlobbiedfor
morestatestoalsoadoptsimilarregulations,thefederalgovernmentpassedamandatein1974tohaveallstatesimplementaCONprogramaspartoftheNationalHealthPlanningand
ResourcesDevelopmentAct.
49
Asaresult,allstates,exceptLouisiana,hadaCONl
温馨提示
- 1. 本站所有资源如无特殊说明,都需要本地电脑安装OFFICE2007和PDF阅读器。图纸软件为CAD,CAXA,PROE,UG,SolidWorks等.压缩文件请下载最新的WinRAR软件解压。
- 2. 本站的文档不包含任何第三方提供的附件图纸等,如果需要附件,请联系上传者。文件的所有权益归上传用户所有。
- 3. 本站RAR压缩包中若带图纸,网页内容里面会有图纸预览,若没有图纸预览就没有图纸。
- 4. 未经权益所有人同意不得将文件中的内容挪作商业或盈利用途。
- 5. 人人文库网仅提供信息存储空间,仅对用户上传内容的表现方式做保护处理,对用户上传分享的文档内容本身不做任何修改或编辑,并不能对任何下载内容负责。
- 6. 下载文件中如有侵权或不适当内容,请与我们联系,我们立即纠正。
- 7. 本站不保证下载资源的准确性、安全性和完整性, 同时也不承担用户因使用这些下载资源对自己和他人造成任何形式的伤害或损失。
最新文档
- 雷雨读后感-600字
- 小清新绿色中小学生开学家长会
- 2024年河北省邯郸市邯山区扬帆初中学校中考三模数学试题(无答案)
- 证券投资技术分析 (第七版) 课件 李向科 第8、9章 技术指标2、时间周期理论
- 2023体育部工作计划6篇
- 中医培训课件:《穴位贴敷疗法》
- 我国移动L2等级考试样题
- 2024幼儿园安全个人工作计划
- 在学校当志愿者心得体会7篇
- 青神发展投资集团有限公司2024年公开招聘笔试备考题库及答案解析
- 拆除工程的标书
- 跟踪审计服务投标方案(技术方案)
- 公司信贷客户风险分析报告
- 音乐学与音乐心理学培训资料
- 智慧教育改变课堂教学-2024年智慧教育前景
- 陕西园林行业分析
- 幼儿园食品安全主体责任长效机制
- 延迟焦化腐蚀和防腐
- 2024年高等教育经济类自考-00069国际税收历年考试高频考点试题附带答案
- (完整版)化学实验室安全知识培训
- 勇往直前无惧困难主题班会课件
评论
0/150
提交评论