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Hospital Market Structure and Cost Performance: A Case Study

Author

Listed:
  • Rexford E. Santerre

    (Bentley College)

  • Dana C. Bennett

    (Bentley College)

Abstract

Prior research on the nonprice theory of hospital competition uses data prior to the mid-1980s when third party payers were insensitive to hospital prices. Moreover, existing studies fail to test this theory for the different types of hospital ownership. In response to these issues, this research employs a more current data set and examines this theory for three distinct samples of nonprice theory of hospital competition only for nonprofit institutions. Conversely, costs for public and for-profit hospitals are found to be unaffected by market structure.

Suggested Citation

  • Rexford E. Santerre & Dana C. Bennett, 1992. "Hospital Market Structure and Cost Performance: A Case Study," Eastern Economic Journal, Eastern Economic Association, vol. 18(2), pages 209-219, Spring.
    • Handle: RePEc:eej:eeconj:v:18:y:1992:i:2:p:209-219
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume18/V18N2P209_219.pdf
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    References listed on IDEAS

    as
    1. Paul L. Joskow, 1980. "The Effects of Competition and Regulation on Hospital Bed Supply and the Reservation Quality of the Hospital," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 421-447, Autumn.
    2. Robinson, James C. & Luft, Harold S., 1985. "The impact of hospital market structure on patient volume, average length of stay, and the cost of care," Journal of Health Economics, Elsevier, vol. 4(4), pages 333-356, December.
    3. David S. Salkever & Donald M. Steinwachs & Agnes Rupp, 1985. "Hospital Cost and Efficiency Under Per Service and Per Case Payment in Maryland: A Tale of the Carrot and the Stick," NBER Working Papers 1633, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. O. David Gulley & Rexford E. Santerre, 2003. "The Effect of Public Policies on Nursing Home Care in the United States," Eastern Economic Journal, Eastern Economic Association, vol. 29(1), pages 93-104, Winter.

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    More about this item

    Keywords

    Hospital; Hospitals; Market Structure;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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