I examine the organization of production in healthcare and its consequences for healthcare quality, patient outcomes, and access to care for patients. Chapter 1 examines the production technology in healthcare, how surgeons sort across hospitals, and the consequences of this sorting on patient outcomes. Chapter 2 shows the importance of trade and economies of scale in determining the distribution of consumption and production of medical services across the U.S. Chapter 3 investigates the internal organization of healthcare firms and its consequences for physician specialization.