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Where would you go for your next hospitalization?

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  • Jung, Kyoungrae
  • Feldman, Roger
  • Scanlon, Dennis

Abstract

We examine the effects of diverse dimensions of hospital quality - including consumers' perceptions of unobserved attributes - on future hospital choice. We utilize consumers' stated preference weights to obtain hospital-specific estimates of perceptions about unmeasured attributes such as reputation. We report three findings. First, consumers' perceptions of reputation and medical services contribute substantially to utility for a hospital choice. Second, consumers tend to select hospitals with high clinical quality scores even before the scores are publicized. However, the effect of clinical quality on hospital choice is relatively small. Third, satisfaction with a prior hospital admission has a large impact on future hospital choice. Our findings suggest that including measures of consumers' experience in report cards may increase their responsiveness to publicized information, but other strategies are needed to overcome the large effects of consumers' beliefs about other quality attributes.

Suggested Citation

  • Jung, Kyoungrae & Feldman, Roger & Scanlon, Dennis, 2011. "Where would you go for your next hospitalization?," Journal of Health Economics, Elsevier, vol. 30(4), pages 832-841, July.
  • Handle: RePEc:eee:jhecon:v:30:y:2011:i:4:p:832-841
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    References listed on IDEAS

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    Cited by:

    1. Suzanne Ruwaard & Rudy Douven, 2014. "Quality and hospital choice for cataract treatments: the winner takes most," CPB Discussion Paper 272, CPB Netherlands Bureau for Economic Policy Analysis.
    2. Baltagi, Badi H. & Yen, Yin-Fang, 2014. "Hospital treatment rates and spillover effects: Does ownership matter?," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 193-202.
    3. Gutacker, Nils & Siciliani, Luigi & Moscelli, Giuseppe & Gravelle, Hugh, 2016. "Choice of hospital: Which type of quality matters?," Journal of Health Economics, Elsevier, vol. 50(C), pages 230-246.
    4. Andrew Sfekas, 2013. "Is There A Medicaid Penalty? The Effect Of Hospitals' Medicaid Population On Their Private Payer Market Share," Health Economics, John Wiley & Sons, Ltd., vol. 22(11), pages 1360-1376, November.
    5. Shi Bo & Chen Wen, 2018. "Individual Health Insurance Market with an Entrant – The ACA Health Insurance Exchange Observations," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 12(2), pages 1-27, July.
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    7. Ferreira, Diogo Cunha & Marques, Rui Cunha & Nunes, Alexandre Morais & Figueira, José Rui, 2021. "Customers satisfaction in pediatric inpatient services: A multiple criteria satisfaction analysis," Socio-Economic Planning Sciences, Elsevier, vol. 78(C).
    8. Avdic, Daniel & Moscelli, Giuseppe & Pilny, Adam & Sriubaite, Ieva, 2019. "Subjective and objective quality and choice of hospital: Evidence from maternal care services in Germany," Journal of Health Economics, Elsevier, vol. 68(C).
    9. Daniel Avdic & Tugba Bueyuekdurmus & Giuseppe Moscelli & Adam Pilny & Ieva Sriubaite, 2018. "Subjective and objective quality reporting and choice of hospital: Evidence from maternal care services in Germany," CINCH Working Paper Series 1803, Universitaet Duisburg-Essen, Competent in Competition and Health.
    10. K. John McConnell & Richard C. Lindrooth & Douglas R. Wholey & Thomas M. Maddox & Nick Bloom, 2016. "Modern Management Practices and Hospital Admissions," Health Economics, John Wiley & Sons, Ltd., vol. 25(4), pages 470-485, April.
    11. Suzanne Ruwaard & Rudy Douven, 2014. "Quality and hospital choice for cataract treatments: the winner takes most," CPB Discussion Paper 272.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    12. David Kuklinski & Justus Vogel & Alexander Geissler, 2021. "The impact of quality on hospital choice. Which information affects patients’ behavior for colorectal resection or knee replacement?," Health Care Management Science, Springer, vol. 24(1), pages 185-202, March.
    13. Corinna Hentschker & Roman Mennicken, 2015. "The Volume‐Outcome Relationship and Minimum Volume Standards – Empirical Evidence for Germany," Health Economics, John Wiley & Sons, Ltd., vol. 24(6), pages 644-658, June.
    14. Bisceglia, Michele & Cellini, Roberto & Siciliani, Luigi & Straume, Odd Rune, 2020. "Optimal dynamic volume-based price regulation," International Journal of Industrial Organization, Elsevier, vol. 73(C).
    15. Chou, Shin-Yi & Deily, Mary E. & Li, Suhui & Lu, Yi, 2014. "Competition and the impact of online hospital report cards," Journal of Health Economics, Elsevier, vol. 34(C), pages 42-58.
    16. Ferreira, D.C. & Marques, R.C. & Nunes, A.M. & Figueira, J.R., 2018. "Patients’ satisfaction: The medical appointments valence in Portuguese public hospitals," Omega, Elsevier, vol. 80(C), pages 58-76.
    17. Roger Feldman & Kyoungrae Jung, 2012. "Testing the Hirshleifer–Riley Model: The Values of Information Sources for a Future Hospital Stay," Journal of Consumer Policy, Springer, vol. 35(3), pages 355-371, September.
    18. Lena Bucatariu & Babu George, 2020. "Consumer behavior and customer relationship management in mental health services," Upravlenets, Ural State University of Economics, vol. 11(3), pages 46-58, July.
    19. Mennicken, Roman & Kolodziej, Ingo W.K. & Augurzky, Boris & Kreienberg, Rolf, 2014. "Concentration of gynaecology and obstetrics in Germany: Is comprehensive access at stake?," Health Policy, Elsevier, vol. 118(3), pages 396-406.
    20. Niu, Baozhuang & Xu, Haotao & Dai, Zhipeng, 2022. "Check Only Once? Health Information Exchange between Competing Private Hospitals," Omega, Elsevier, vol. 107(C).

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