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New Evidence on Hospital Profitability by Payer Group and the Effects of Payer Generosity

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  • Bernard Friedman
  • Neeraj Sood
  • Kelly Engstrom
  • Diane McKenzie

Abstract

This study provides (a) new estimates of U.S. hospital profitability by payer group, controlling for hospital characteristics, and (b) evidence about the intensity of care for particular diseases associated with the generosity of the patient's payer and other payers at the same hospital. The conceptual framework is a variant of the well-known model of a local monopolist selling in a segmented market. Effects of two kinds of regulation are considered. The data are taken from hospital accounting reports in four states in FY2000, and detailed discharge summaries from the Healthcare Cost and Utilization Project of the Agency for Healthcare Research and Quality.

Suggested Citation

  • Bernard Friedman & Neeraj Sood & Kelly Engstrom & Diane McKenzie, 2004. "New Evidence on Hospital Profitability by Payer Group and the Effects of Payer Generosity," International Journal of Health Economics and Management, Springer, vol. 4(3), pages 231-246, September.
    • Handle: RePEc:kap:ijhcfe:v:4:y:2004:i:3:p:231-246
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    Cited by:

    1. Charles Hegji, 2007. "A brief look at hospital profits by outpatient services offered," Economics Bulletin, AccessEcon, vol. 9(12), pages 1-10.
    2. repec:ebl:ecbull:v:9:y:2007:i:12:p:1-10 is not listed on IDEAS
    3. Na-Eun Cho & KiHoon Hong, 2018. "A Kitchen with too Many Cooks: Factors Associated with Hospital Profitability," Sustainability, MDPI, vol. 10(2), pages 1-14, January.
    4. He, Daifeng & Mellor, Jennifer M., 2012. "Hospital volume responses to Medicare's Outpatient Prospective Payment System: Evidence from Florida," Journal of Health Economics, Elsevier, vol. 31(5), pages 730-743.
    5. Long Mark C & Goldfarb Marsha G. & Goldfarb Robert S, 2008. "Explanations for Persistent Nursing Shortages," Forum for Health Economics & Policy, De Gruyter, vol. 11(2), pages 1-37, November.

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