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Spatial Model Specification for Contractual Arrangements between Rural Hospitals and Physicians

  • Fannin, J. Matthew

    (LA State U Agricultural Center)

  • Barnes, James N.

    (LA State U Agricultural Center)

Registered author(s):

    We test sensitivity of model specification on the choice of contractual physician arrangements by hospitals through use of spatially defined covariates, rural/urban subset models, and geographically weighted regression (GWR) models. Results show that hospitals are significantly influenced by neighboring hospitals' physician arrangement choices whether they are market-oriented or integrated arrangements. Further, some spatial covariates were shown to be nonstationary across space, including variables that were insignificant in the global parameter models. Results suggest health care scholars consider varying parameter models in order to avoid global statements concerning health care relationships and evaluating the performance of health policy.

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    File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/194/149
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    Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

    Volume (Year): 39 (2009)
    Issue (Month): 2 ()
    Pages: 189-211

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    Handle: RePEc:rre:publsh:v:39:y:2009:i:2:p:189-211
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    1. Cuellar, Alison Evans & Gertler, Paul J., 2006. "Strategic integration of hospitals and physicians," Journal of Health Economics, Elsevier, vol. 25(1), pages 1-28, January.
    2. Kamar Ali & Mark D. Partridge & M. Rose Olfert, 2007. "Can Geographically Weighted Regressions Improve Regional Analysis and Policy Making?," International Regional Science Review, SAGE Publishing, vol. 30(3), pages 300-329, July.
    3. Florax, Raymond J. G. M. & Folmer, Hendrik & Rey, Sergio J., 2003. "Specification searches in spatial econometrics: the relevance of Hendry's methodology," Regional Science and Urban Economics, Elsevier, vol. 33(5), pages 557-579, September.
    4. Coles, Jerilyn W. & Hesterly, William S., 1998. "Transaction costs, quality, and economies of scale: examining contracting choices in the hospital industry," Journal of Corporate Finance, Elsevier, vol. 4(4), pages 321-345, December.
    5. Alfredo Esposto, 2004. "Contractual Integration of Physician and Hospital Services in the U.S," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 8(1), pages 49-69, March.
    6. Andrew M. Isserman, 2005. "In the National Interest: Defining Rural and Urban Correctly in Research and Public Policy," International Regional Science Review, SAGE Publishing, vol. 28(4), pages 465-499, October.
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