Determinants of Market Share of For-Profit Hospitals: An Empirical Examination

Seungchul Lee, Chune Young Chung, Hong Kee Sul and Yunjae Lee
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Seungchul Lee: Samsung Economic Research Institute, Seoul 137-955, Korea
Chune Young Chung: School of Business Administration, College of Business and Economics, Chung-Ang University, Seoul 156-756, Korea
Hong Kee Sul: Wharton Research Data Service, The Wharton School, University of Pennsylvania, Philadelphia, PA 19104, USA
Yunjae Lee: Graduate School of Business Administration, Chung-Ang University, Seoul 156-756, Korea

Social Sciences, 2017, vol. 6, issue 4, 1-12

Abstract: This study estimates the effects of a prospective payment system on the growth of for-profit hospitals. The empirical results show that the proportion of patient care paid for by Medicare managed care has a positive, statistically significant relationship with the market share of for-profit hospitals. Medicare managed care reimburses health care providers prospectively, and a larger portion of prospective reimbursements is received by for-profit hospitals, whose market share consequently increases. In addition, the proportion of patients with Medi-Cal and third party managed care has a positive, statistically significant relationship with the market share of for-profit hospitals.

Keywords: hospital reimbursement; for-profit hospital; market share; prospective reimbursement; nonprofit hospital (search for similar items in EconPapers)
JEL-codes: A B N P Y80 Z00 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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