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Medical Research and Health Care Finance: Evidence from Academic Medical Centers

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  • Pierre Azoulay
  • Misty L. Heggeness
  • Jennifer L. Kao

Abstract

Academic Medical Centers (AMCs)—comprising medical schools, teaching hospitals, and research laboratories—play an important role in US biomedical innovation. The Balanced Budget Act of 1997 changed reimbursements for Medicare inpatient claims and subsidies for medical residents. We compare AMCs' relative exposure to the reform and how these differences affect their researchers' ability to attract NIH grant funding, as well as the quantity, impact, and content of their publications. We find that in response to the reform, research activity increases by approximately 6%, with larger effects observed for “translational” and clinical research. We find little effect on clinical outcomes.

Suggested Citation

  • Pierre Azoulay & Misty L. Heggeness & Jennifer L. Kao, 2020. "Medical Research and Health Care Finance: Evidence from Academic Medical Centers," NBER Working Papers 27943, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:27943
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    References listed on IDEAS

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    1. Vivian Wu, 2010. "Hospital cost shifting revisited: new evidence from the balanced budget act of 1997," International Journal of Health Economics and Management, Springer, vol. 10(1), pages 61-83, March.
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    Cited by:

    1. Pierre Azoulay & Ariel Fishman, 2020. "The Rise of For-Profit Experimental Medicine," NBER Working Papers 26892, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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