Integration and Task Allocation: Evidence from Patient Care

23 Pages Posted: 11 Jul 2013

See all articles by Guy David

Guy David

The Wharton School, University of Pennsylvania - Health Care Management

Evan Rawley

University of Minnesota - Twin Cities - Carlson School of Management

Daniel Polsky

Bloomberg School of Public Health, Department of Health Policy and Management, Johns Hopkins University; Johns Hopkins University - Carey Business School

Multiple version iconThere are 2 versions of this paper

Date Written: Fall 2013

Abstract

Using the universe of patient transitions from inpatient hospital care to skilled nursing facilities and home health care in 2005, we show how integration eliminates task misallocation problems between organizations. We find that vertical integration allows hospitals to shift patient recovery tasks downstream to lower‐cost organizations by discharging patients earlier (and in poorer health) and increasing post‐hospitalization service intensity. Although integration facilitates a shift in the allocation of tasks and resources, health outcomes either improved or were unaffected by integration on average. The evidence suggests that integration solves coordination problems that arise in market exchange through improvements in the allocation of tasks across care settings.

Suggested Citation

David, Guy and Rawley, Evan and Polsky, Daniel, Integration and Task Allocation: Evidence from Patient Care (Fall 2013). Journal of Economics & Management Strategy, Vol. 22, Issue 3, pp. 617-639, 2013, Available at SSRN: https://ssrn.com/abstract=2292330 or http://dx.doi.org/10.1111/jems.12023

Guy David (Contact Author)

The Wharton School, University of Pennsylvania - Health Care Management ( email )

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HOME PAGE: http://www.wharton.upenn.edu/faculty/david.html

Evan Rawley

University of Minnesota - Twin Cities - Carlson School of Management ( email )

19th Avenue South
Minneapolis, MN 55455
United States

Daniel Polsky

Bloomberg School of Public Health, Department of Health Policy and Management, Johns Hopkins University ( email )

624 North Broadway
Baltimore, MD 21205
United States

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

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