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Assessing the Quality of Public Services: For-profits, Chains, and Concentration in the Hospital Market

Author

Listed:
  • Johannes S. Kunz

    (Monash University)

  • Carol Propper

    (Imperial College London)

  • Kevin E. Staub

    (University of Melbourne)

  • Rainer Winkelmann

    (University of Zurich)

Abstract

We examine variation in US hospital quality across ownership, chain membership, and market concentration. We use a new measure of quality derived from the penalties imposed on hospitals under the flagship Hospital Readmissions Reduction Program. We document a robust and sizable negative for-profit quality gap: for-profit hospitals are consistently of lower quality. We find that a substantial part of the gap is related to being located in less competitive markets. This reduction occurs most for hospitals that are part of large national chains. For such hospitals we find no quality gap in fully competitive markets.

Suggested Citation

  • Johannes S. Kunz & Carol Propper & Kevin E. Staub & Rainer Winkelmann, 2023. "Assessing the Quality of Public Services: For-profits, Chains, and Concentration in the Hospital Market," Papers 2023-01, Centre for Health Economics, Monash University.
    • Handle: RePEc:mhe:chemon:2023-01
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    More about this item

    Keywords

    Hospital Readmissions; Affordable Care Act; Hospital Quality; Competition; Hospital Chains;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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