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Hospital Costs and Competition for Services: A Multiproduct Analysis

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Author Info
Fournier, Gary M
Mitchell, Jean M

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Abstract

The authors estimate the effects of market structure on hospital costs using a translog multiproduct cost function. Recognizing the multiplicity of services provided by hospitals, the results show that costs are substantially determined by service configuration, and that there are distinct economies of size and sco pe. The model also distinguishes market concentration measures by servic e type, including obstetrics, radiation therapy, diagnostic imaging, a nd surgery. Estimates show that, after controlling for the other determinants of cost, the degree of competition has only modest cost-increasing effects. Copyright 1992 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 74 (1992)
Issue (Month): 4 (November)
Pages: 627-34
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Handle: RePEc:tpr:restat:v:74:y:1992:i:4:p:627-34

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  1. Antonio Giuffrida & Hugh Gravelle & Matthew Sutton, . "Efficiency and Administrative Costs in Primary Care," Discussion Papers 99/27, Department of Economics, University of York. [Downloadable!]
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  2. King, Robert P. & Leibtag, Ephraim & Behl, Ajay S., 2004. "Supermarket Characteristics And Operating Costs In Low-Income Areas," 2004 Annual meeting, August 1-4, Denver, CO 20361, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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  3. Marini. G & Miraldo, M, 2009. "The costs of new organisational and financial freedom: The case of English NHS trusts," Health, Econometrics and Data Group (HEDG) Working Papers 09/26, HEDG, c/o Department of Economics, University of York. [Downloadable!]
  4. Paul W. Wilson & Kathleen Carey, 2004. "Nonparametric analysis of returns to scale in the US hospital industry," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(4), pages 505-524. [Downloadable!]
  5. Martin Gaynor & William B. Vogt, 1999. "Antitrust and Competition in Health Care Markets," NBER Working Papers 7112, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Vikram Tiwari & H. Heese, 2009. "Specialization and competition in healthcare delivery networks," Health Care Management Science, Springer, vol. 12(3), pages 306-324, September. [Downloadable!] (restricted)
  7. C. L. Chua & Alfons Palangkaraya & Jongsay Yong, 2009. "Hospital Competition, Technical Efficiency, and Quality," Melbourne Institute Working Paper Series wp2009n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
  8. Tong Li & Robert Rosenman, 2001. "Estimating hospital costs with a generalized Leontief function," Health Economics, John Wiley & Sons, Ltd., vol. 10(6), pages 523-538. [Downloadable!]
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