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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Find related papers by JEL classification: I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
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