Does Advertising Matter to Emergency Patients? The Effect of Advertising on Hospital Choice, Travel Distances, and Mortality Rates

57 Pages Posted: 24 Feb 2025

See all articles by Simon Kim

Simon Kim

University of Texas at Dallas - Naveen Jindal School of Management

TI Tongil Kim

University of Texas at Dallas - Naveen Jindal School of Management

Tae Jung Yoon

College of Business, Korea Advanced Institute of Science and Technology (KAIST)

Date Written: August 14, 2023

Abstract

The U.S. healthcare industry has undergone significant changes in recent decades. Consumers have become increasingly involved in choosing healthcare providers, and providers have escalated their direct-to-consumer advertising efforts. However, the impact of hospital advertising on emergency patients remains largely unexplored, despite the ongoing debate surrounding the value of this marketing strategy. This study examines the impact of hospital television advertising on hospital choice and subsequent health outcomes of emergency patients using data on more than 92,000 individual patient visits in Florida between 2012 and 2015. Findings suggest patients are more likely to choose hospitals that advertise more, with older, unhealthy, or lower-income patients being more responsive to advertising. By influencing hospital choices, advertising can subsequently impact emergency patient health outcomes via (i) changing the travel distance to a selected hospital; and (ii) altering the quality of care received. Counterfactual analyses show that advertising contributes to higher mortality rates, with 27% of this increase attributed to greater travel distance and the rest attributed to a lower quality of emergency care in the hospitals that advertise. These findings emphasize the importance of carefully examining hospital advertising practices for emergency patients, particularly in light of the changing landscape of consumer-driven healthcare.

Keywords: healthcare marketing, advertising, emergency patients, direct-to-consumer advertising, discrete choice model, structural model

Suggested Citation

Kim, Seung Mok and Kim, TI Tongil and Yoon, Tae Jung, Does Advertising Matter to Emergency Patients? The Effect of Advertising on Hospital Choice, Travel Distances, and Mortality Rates (August 14, 2023). Available at SSRN: https://ssrn.com/abstract=5147807 or http://dx.doi.org/10.2139/ssrn.5147807

Seung Mok Kim

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

TI Tongil Kim (Contact Author)

University of Texas at Dallas - Naveen Jindal School of Management ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

Tae Jung Yoon

College of Business, Korea Advanced Institute of Science and Technology (KAIST) ( email )

85 Hoegiro Dongdaemun-Gu
Seoul 02455
Korea, Republic of (South Korea)

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