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The value of relationships in healthcare

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  • Sabety, Adrienne

Abstract

Many interactions between buyers and sellers occur in the context of relationships. In healthcare markets, the patient-primary care physician (PCP) relationship is one common example. I provide evidence that patient-PCP relationships are valued by patients and are good for patients’ health. In response to an exogenous loss of a longstanding PCP, adverse events increase: patient mortality increases by 4%, emergency department visits increase by 4%, and hospital admissions increase by 3%. Adverse events increase with the length of the exiting PCP-patient relationship, suggesting that relationships contain non-transferable information that positively impacts patients’ health.

Suggested Citation

  • Sabety, Adrienne, 2023. "The value of relationships in healthcare," Journal of Public Economics, Elsevier, vol. 225(C).
    • Handle: RePEc:eee:pubeco:v:225:y:2023:i:c:s0047272723001093
    DOI: 10.1016/j.jpubeco.2023.104927
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    1. Stefan Sliwa Ruiz & Malte Becker & Thomas Hone & Rudi Rocha, 2023. "Doctor Turnover and Health Outcomes: Evidence from the Exit of Cuban Doctors in Brazil," Working Papers 18, Instituto de Estudos para Políticas de Saúde.

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    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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