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Integration and Task Allocation: Evidence from Patient Care / Guy David, Evan Rawley, Daniel Polsky.

NBER Working papers Available online

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Format:
Book
Author/Creator:
David, Guy.
Contributor:
National Bureau of Economic Research.
Rawley, Evan.
Polsky, Daniel.
Series:
Working Paper Series (National Bureau of Economic Research) no. w17419.
NBER working paper series no. w17419
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Integration and Task Allocation
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2011.
Summary:
We develop a formal model to show how integration solves task allocation problems between organizations and test the predictions of the model, using a large and rich patient-level dataset on hospital discharges to nursing homes and home health care. As predicted by the theory, we find that vertical integration allows hospitals to shift patient recovery tasks downstream to lower cost delivery systems by discharging patients earlier and in poorer health, and integration leads to greater post-hospitalization service intensity. While integration facilitates a shift in the allocation of tasks, health outcomes are no worse when patients receive care from an integrated provider. The evidence suggests that by improving the allocation of tasks, integration solves coordination problems that arise in market exchange.
Notes:
Print version record
September 2011.

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