Hospital Allocation and Racial Disparities in Health Care

Amitabh Chandra, Pragya Kakani and Adam Sacarny
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Amitabh Chandra: Harvard Kennedy School, Harvard Business School, and NBER
Pragya Kakani: Harvard University and NBER
Adam Sacarny: Columbia University Mailman School of Public Health and NBER

The Review of Economics and Statistics, 2024, vol. 106, issue 4, 924-937

Abstract: We develop a framework to measure the role of hospital allocation in racial disparities in health care and use it to study Black and white heart attack patients. Black patients receive care at lower-performing hospitals than white patients. However, over two decades, the performance gap between hospitals treating Black and white patients shrank by over two-thirds. This progress is due to more rapid performance improvement at hospitals that tended to treat Black patients rather than reallocation of patients. Hospital improvement is correlated with adoption of a productivity-raising input, beta blockers. Our work highlights reallocation and performance improvement as future disparity-reduction levers.

Date: 2024
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