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A Regional Supply and Demand Model for Inpatient Hospital Care

Author

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  • J A Bikker

    (Econometric Research and Special Studies Department, De Nederlandsche Bank NV, Amsterdam, The Netherlands)

  • A F de Vos

    (Department of Econometrics, Faculty of Economics, Free University, Amsterdam, The Netherlands)

Abstract

In this paper a regional supply and demand model for hospital admissions is developed which can be used for policymaking and planning purposes. It incorporates spatial factors such as travel-time costs into a model of market equilibrium in which waiting time acts implicitly as the equilibrating device. By distinguishing travel-time costs or distances it is shown that both supply and demand within local markets strongly influence admissions in a way which cannot be observed on aggregated levels: the tension between supply and demand is cushioned by a strong redistribution of patients. The model encompasses several well-known models for patient flows and hospital utilization originating in regional economics.

Suggested Citation

  • J A Bikker & A F de Vos, 1992. "A Regional Supply and Demand Model for Inpatient Hospital Care," Environment and Planning A, , vol. 24(8), pages 1097-1116, August.
    • Handle: RePEc:sae:envira:v:24:y:1992:i:8:p:1097-1116
    DOI: 10.1068/a241097
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    References listed on IDEAS

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    1. Acton, Jan Paul, 1975. "Nonmonetary Factors in the Demand for Medical Services: Some Empirical Evidence," Journal of Political Economy, University of Chicago Press, vol. 83(3), pages 595-614, June.
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    5. Feldstein, Martin S, 1971. "Hospital Cost Inflation: A Study of Nonprofit Price Dynamics," American Economic Review, American Economic Association, vol. 61(5), pages 853-872, December.
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    7. Jacob A. Bikker, 1987. "An International Trade Flow Model with Substitution: An Extension of the Gravity Model," Kyklos, Wiley Blackwell, vol. 40(3), pages 315-337, August.
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    Cited by:

    1. Simon Jones & Jessica Wardlaw & Susan Crouch & Michelle Carolan, 2011. "Modelling catchment areas for secondary care providers: a case study," Health Care Management Science, Springer, vol. 14(3), pages 253-261, September.
    2. Jacob J de Vries & Peter Nijkamp & Piet Rietveld, 2009. "Exponential or Power Distance-Decay for Commuting? An Alternative Specification," Environment and Planning A, , vol. 41(2), pages 461-480, February.
    3. J.A. Bikker, 2009. "An extended gravity model with substitution applied to international trade," Working Papers 09-17, Utrecht School of Economics.
    4. Wende, Danny & Kopetsch, Thomas & Richter, Wolfram F., 2020. "Planning health care capacities with a gravity equation," Ruhr Economic Papers 888, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Wende, Danny & Kopetsch, Thomas & Richter, Wolfram F., 2021. "A Demand-Oriented Approach to Health Care Capacity Planning," IZA Discussion Papers 14860, Institute of Labor Economics (IZA).
    6. Jacob J. de Vries & Peter Nijkamp & Piet Rietveld, 2000. "Alonso's General Theory of Movement: Advances in Spatial Interaction Modeling," Tinbergen Institute Discussion Papers 00-062/3, Tinbergen Institute.
    7. Cho, Cheol-Joo, 1998. "An equity-efficiency trade-off model for the optimum location of medical care facilities," Socio-Economic Planning Sciences, Elsevier, vol. 32(2), pages 99-112, June.
    8. Butter, F.A.G. den, 1993. "Supply of social security as a cause of low labour participation in the Netherlands : a cliometric analysis," Serie Research Memoranda 0056, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.

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