Researchers from Stanford University Detail Findings in Economics (Exogenous Exits, Market Structure, and Equilibrium Contracts In Health Care): Economics

2025 OCT 22 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- A new study on Economics is now available. According to news originating from Stanford, California, by NewsRx editors, the research stated, “This paper quantifies the causal effects of exogenous health insurer exits on contract structure and health care market outcomes, proposing market concentration as a likely mechanism for these effects.”

Our news journalists obtained a quote from the research from Stanford University, “Leveraging the termination of the largest health insurer in Colombia, I find that the use of fee-for-service contracts increased after the termination relative to capitation contracts. Treatment effects are larger in markets with higher provider than insurer concentration at baseline.”

According to the news editors, the research concluded: “Results suggest that equilibrium contracts place the financial risk on insurers in markets where providers have higher bargaining leverage.”

This research has been peer-reviewed.

For more information on this research see: Exogenous Exits, Market Structure, and Equilibrium Contracts In Health Care. American Economic Review: Insights, 2025;7(3):325-339. American Economic Review: Insights can be contacted at: Amer Economic Assoc, 2014 Broadway, Ste 305, Nashville, TN 37203, USA.

The news correspondents report that additional information may be obtained from Natalia Serna, Stanford University, Stanford, CA 94305, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1257/aeri.20240155. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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