Delivering Public Health Care Services: Substitutes, Complements, or Both?

Kimberly J. Rask and Kevin N. Rask

Contemporary Economic Policy, 2005, vol. 23, issue 1, 28-39

Abstract: In this article we investigate how the availability of public health care providers increases (complement) or decreases (substitute) the likelihood of having public or private health insurance. The probability of each of three insurance alternatives (uninsured, Medicaid, private insurance) is modeled as a function of the availability of public programs in the respondents’community along with individual characteristics including family income, health status, and family structure. Using population‐based estimates, public hospitals are associated with a crowd‐out rate of 3.5 percent to 8.6 percent. Federally qualified health centers were associated with a net complementary effect (additional public insurance take‐up) of 7.1 percent. (JEL I11, I18, I38)

Date: 2005
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