Financial Effects of Remote Product Delivery: Evidence from Hospitals

Kimberly Cornaggia, Xuelin Li and Zihan Ye

The Review of Financial Studies, 2024, vol. 37, issue 9, 2817-2854

Abstract: We study financial effects of remote product delivery in the healthcare industry. Exploiting staggered law adoption for identification, we find that telehealth provision redistributes hospital operations and access to capital away from rural communities. As urban telehealth providers acquire rural patients, rural hospitals experience decreased revenue and profit, credit rating downgrades, increased cost of capital, and ultimately risk of closure. Although telehealth reduces travel costs, some communities lose access to acute care. Overall, we conclude that remote healthcare services have financial consequences as well as real effects, and their benefits are unequally distributed.

Keywords: G12; H74; H75; I11; L31 (search for similar items in EconPapers)
Date: 2024
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