The effect of hospital/physician integration on hospital choice

Laurence C. Baker, M. Kate Bundorf and Daniel P. Kessler

Journal of Health Economics, 2016, vol. 50, issue C, 1-8

Abstract: In this paper, we estimate how hospital ownership of physicians' practices affects their patients' hospital choices. We match data on the hospital admissions of Medicare beneficiaries, including the identity of their physician, with data on the identity of the owner of their physician's practice. We find that a hospital's ownership of a physician dramatically increases the probability that the physician's patients will choose the owning hospital. We also find that patients are more likely to choose a high-cost, low-quality hospital when their physician is owned by that hospital.

Keywords: Cost and quality of care; Health economics; Hospital integration; Hospital choice (search for similar items in EconPapers)
JEL-codes: I10 I11 I18 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:50:y:2016:i:c:p:1-8

DOI: 10.1016/j.jhealeco.2016.08.006

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