Health Care Management Papers

Document Type

Journal Article

Date of this Version

5-2011

Publication Source

International Journal of Industrial Organization

Volume

29

Issue

3

Start Page

342

Last Page

344

DOI

10.1016/j.ijindorg.2011.01.003

Abstract

This paper seeks to understand the impact of the Medicare Rural Hospital Flexibility (Flex) Program on rural resident hospital choice. The program created a new class of hospital, the Critical Access Hospital (CAH), which receives more generous reimbursement in return for limiting its beds and services. The program's goal is to maintain access to hospital care. Estimates from a patient choice model show that patient utility from visiting a hospital was negatively a ected by conversion. While the lower bed capacity appears to play a minor role, the reduction in services results in a 28 percent drop in admission rates.

Copyright/Permission Statement

© . This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

hospital choice, patient welfare, medicare

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Date Posted: 27 November 2017

This document has been peer reviewed.