Managed Care, Distance Traveled, and Hospital Market Definition
Most scholars and antitrust cases have defined hospital service markets as primarily local. But, two recent decisions have greatly expanded geographic markets, incorporating hospitals as far as 100 miles apart. Managed care plans, now important in most markets, were believed to shift patients to distant hospitals to capture lower prices. We examine distance traveled and its connection to managed care penetration. In contrast to earlier literature, we examine both direct and indirect effects. We find that increases in managed care have impacted distances traveled, but these effects are too small to justify much change in geographical markets for research or antitrust law.
|Date of creation:||21 Jul 1998|
|Date of revision:|
|Contact details of provider:|| Postal: 2127 North Hall, Santa Barbara, CA 93106-9210|
Phone: (805) 893-3670
Fax: (805) 893-8830
Web page: http://www.escholarship.org/repec/ucsbecon_dwp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gregory Vistnes, 1994. "An Empirical Investigation of Procurement Contract Structures," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 215-241, Summer.
- William White & Michael Morrisey, 1998. "Are Patients Traveling Further?," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 5(2), pages 203-221.
- Burns, Lawton R. & Wholey, Douglas R., 1992. "The impact of physician characteristics in conditional choice models for hospital care," Journal of Health Economics, Elsevier, vol. 11(1), pages 43-62, May.
- Lee, Hau L & Cohen, Morris A, 1985. "A Multinomial Logit Model for the Spatial Distribution of Hospital Utilization," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(2), pages 159-68, April.
- David Dranove & Mark Shanley & Carol Simon, 1992. "Is Hospital Competition Wasteful?," RAND Journal of Economics, The RAND Corporation, vol. 23(2), pages 247-262, Summer.
- Lee Rivers Mobley & H. E. Frech, 1994. "Firm Growth and Failure in Increasingly Competitive Markets Theory and Application to Hospital Markets," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 77-93.
- Robinson, James C. & Phibbs, Ciaran S., 1990. "An evaluation of Medicaid selective contracting in California," Journal of Health Economics, Elsevier, vol. 8(4), pages 437-455, February.
When requesting a correction, please mention this item's handle: RePEc:cdl:ucsbec:qt84x5q49q. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lisa Schiff)
If references are entirely missing, you can add them using this form.