Abstract

http://ssrn.com/abstract=216508
 
 

References (37)



 
 

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Does Competition Kill? Hospital Quality and Competition


Gautam Gowrisankaran


University of Arizona - Eller College of Management; National Bureau of Economic Research (NBER)

Robert J. Town


University of Pennsylvania - The Wharton School; National Bureau of Economic Research (NBER)

March 2000


Abstract:     
We seek to estimate the effects of competition for both Medicare and HMO patients on the quality decisions of hospitals in Southern California. We find that increases in the degree of competition for HMO patients decrease risk-adjusted hospital mortality rates. Conversely, increases in competition for Medicare enrollees are associated with increases in risk-adjusted mortality rates for hospitals. In conjunction with previous research, our estimates indicate that increasing competition for HMO patients appears to reduce price and save lives and hence appears to be welfare improving. However, increases in competition for Medicare appears to reduce quality, and perhaps reduces welfare. The net effect of a given merger on hospital quality will depend on the geographic distribution of different payer groups.

Number of Pages in PDF File: 30

JEL Classification: I11, L1, L15

working papers series





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Date posted: April 7, 2000  

Suggested Citation

Gowrisankaran, Gautam and Town, Robert J., Does Competition Kill? Hospital Quality and Competition (March 2000). Available at SSRN: http://ssrn.com/abstract=216508 or http://dx.doi.org/10.2139/ssrn.216508

Contact Information

Gautam Gowrisankaran
University of Arizona - Eller College of Management ( email )
McClelland Hall
P.O. Box 210108
Tucson, AZ 85721-0108
United States
HOME PAGE: http://econ.arizona.edu/faculty/gowrisankaran.asp
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Robert J. Town (Contact Author)
University of Pennsylvania - The Wharton School ( email )
3641 Locust Walk
Philadelphia, PA 19104-6365
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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