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Do Hospitals Cross Subsidize? / Guy David, Richard Lindrooth, Lorens A. Helmchen, Lawton R. Burns.
- Format:
- Book
- Author/Creator:
- David, Guy.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w17300.
- NBER working paper series no. w17300
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2011.
- Summary:
- Cross-subsidies are often considered the principal mechanism through which hospitals provide unprofitable care. Yet, hospitals' reliance on and extent of cross-subsidization are difficult to establish. We exploit entry by cardiac specialty hospitals as an exogenous shock to incumbent hospitals' profitability and in turn to their ability to cross-subsidize unprofitable services. Using patient-level data from general short-term hospitals in Arizona and Colorado before and after entry, we find that the hospitals most exposed to entry reduced their provision of services considered to be unprofitable (psychiatric, substance- abuse, and trauma care) and expanded their admissions for neurosurgery, a highly profitable service.
- Notes:
- Print version record
- August 2011.
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