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Hospital Quality and Selective Contracting: Evidence from Kidney Transplantation

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  • Howard David H.

    (Emory University)

Abstract

Most private health insurers offer a limited network of providers to enrollees. Critics have questioned whether selective contracting benefits patients. Plans counter that they take quality into account when choosing providers. Using data on five plans' networks for kidney transplant hospitals, this study shows that in-network hospitals have better outcomes than out-of-network facilities. Conditional logit estimates using patient level data confirm this result: compared to Medicare patients, privately-insured patients are more likely to register at hospitals with higher survival rates. Restricting choice has the potential to improve patient welfare if plans steer uninformed patients to high quality hospitals and physicians.

Suggested Citation

  • Howard David H., 2008. "Hospital Quality and Selective Contracting: Evidence from Kidney Transplantation," Forum for Health Economics & Policy, De Gruyter, vol. 11(2), pages 1-24, March.
    • Handle: RePEc:bpj:fhecpo:v:11:y:2008:i:2:n:2
    DOI: 10.2202/1558-9544.1088
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    Cited by:

    1. Bes, Romy E. & Curfs, Emile C. & Groenewegen, Peter P. & de Jong, Judith D., 2017. "Selective contracting and channelling patients to preferred providers: A scoping review," Health Policy, Elsevier, vol. 121(5), pages 504-514.
    2. Mariétou H. Ouayogodé & Kurt E. Schnier, 2021. "Patient selection in the presence of regulatory oversight based on healthcare report cards of providers: the case of organ transplantation," Health Care Management Science, Springer, vol. 24(1), pages 160-184, March.

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