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Endogenous Hospital Regulation and Its Effects on Hospital and Non-hospital Expenditures

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  • Lanning, Joyce A
  • Morrisey, Michael A
  • Ohsfeldt, Robert L

Abstract

Past studies of hospital rate setting regulation conclude that mature programs have been effective in constraining hospital expenditures. However, if rate regulation is influenced by higher hospital expenditures the relationship between expenditures and rate setting is confounded. This study assesses the impact of rate setting on hospital and non-hospital expenditures using a simultaneous-equation model which separates the effects of hospital expenditures on the decision to regulate from the effects of regulation on expenditures. The simultaneous-equation results indicate that mature rate setting is associated with lower per capita health care expenditures, including hosital and non-hospital expenditures. Copyright 1991 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Journal of Regulatory Economics.

Volume (Year): 3 (1991)
Issue (Month): 2 (June)
Pages: 137-54

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Handle: RePEc:kap:regeco:v:3:y:1991:i:2:p:137-54

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Web page: http://www.springerlink.com/link.asp?id=100298

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Cited by:
  1. Guy David & Lorens A. Helmchen & Robert A. Henderson, 2009. "Does advanced medical technology encourage hospitalist use and their direct employment by hospitals?," Health Economics, John Wiley & Sons, Ltd., vol. 18(2), pages 237-247.
  2. Polsky, Daniel & David, Guy & Yang, Jianing & Kinosian, Bruce & Werner, Rachel M., 2014. "The effect of entry regulation in the health care sector: The case of home health," Journal of Public Economics, Elsevier, vol. 110(C), pages 1-14.
  3. Rexford E. Santerre & Debra Pepper, 2000. "Survivorship in the US hospital services industry," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(5), pages 181-189.
  4. Vivian Ho, 2006. "Does certificate of need affect cardiac outcomes and costs?," International Journal of Health Care Finance and Economics, Springer, vol. 6(4), pages 300-324, December.
  5. Jill R. Horwitz & Daniel Polsky, 2014. "Challenges to Regulatory Decentralization: Lessons from State Health Technology Regulation," NBER Working Papers 19801, National Bureau of Economic Research, Inc.

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