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Hospital Market Structure and Cost Performance: A Case Study

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  • Rexford E. Santerre

    (Bentley College)

  • Dana C. Bennett

    (Bentley College)

Abstract

Prior research on the nonprice theory of hospital competition uses data prior to the mid-1980s when third party payers were insensitive to hospital prices. Moreover, existing studies fail to test this theory for the different types of hospital ownership. In response to these issues, this research employs a more current data set and examines this theory for three distinct samples of nonprice theory of hospital competition only for nonprofit institutions. Conversely, costs for public and for-profit hospitals are found to be unaffected by market structure.

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File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume18/V18N2P209_219.pdf
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Bibliographic Info

Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 18 (1992)
Issue (Month): 2 (Spring)
Pages: 209-219

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Handle: RePEc:eej:eeconj:v:18:y:1992:i:2:p:209-219

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Postal: c/o Dr. Alexandre Olbrecht, The Anisfield School of Business 205, Ramapo College, 505 Ramapo Valley Road, Ramapo, New Jersey 07430, USA
Phone: (201) 684-7346
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Web page: http://www.ramapo.edu/eea/journal.html
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Keywords: Hospital; Hospitals; Market Structure;

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  1. David S. Salkever & Donald M. Steinwachs & Agnes Rupp, 1985. "Hospital Cost and Efficiency Under Per Service and Per Case Payment in Maryland: A Tale of the Carrot and the Stick," NBER Working Papers 1633, National Bureau of Economic Research, Inc.
  2. Robinson, James C. & Luft, Harold S., 1985. "The impact of hospital market structure on patient volume, average length of stay, and the cost of care," Journal of Health Economics, Elsevier, vol. 4(4), pages 333-356, December.
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