Health Care Management Papers

Document Type

Working Paper

Date of this Version

12-2013

Publication Source

Hosted by University of California Berkeley, Economics Department

Abstract

Physician ownership of hospitals involves several competing economic forces. Physician-owners may be incentivized to "cherry-pick" and treat profitable patients at their facilities. However, physician-owned hospitals are often specialized and may provide higher-quality care. This paper uses a structural choice-outcome model to estimate hospital quality, patient-hospital matching, and preferences for treating patients at owned vs. competing hospitals. Instrumental variables analysis of cardiac mortality is used to capture quality; I document a significant mortality improvement at physician-owner preferences; controlling for matching and baseline patient preferences, there is little evidence of physician-owner cherry-picking.

Comments

This is a working paper, not accepted for publication or review.

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Date Posted: 27 November 2017