The effect of urban hospital closure on markets
We measure the effect of urban hospital closure on the operating efficiency of the remaining hospitals in the local market. Closure of a hospital other than the least efficient can be detrimental to social welfare because treatment costs will be higher at surviving hospitals. The results show that h...
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| Veröffentlicht in: | Journal of health economics 2003-09, Vol.22 (5), p.691-712 |
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| container_title | Journal of health economics |
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| creator | Lindrooth, Richard C. Lo Sasso, Anthony T. Bazzoli, Gloria J. |
| description | We measure the effect of urban hospital closure on the operating efficiency of the remaining hospitals in the local market. Closure of a hospital other than the least efficient can be detrimental to social welfare because treatment costs will be higher at surviving hospitals. The results show that hospital closure has led to an evolutionary increase in efficiency in urban markets. The hospitals that closed were less efficient at baseline, and after closure their competitors realized lower costs per adjusted admission through an increase in inpatient admissions and emergency room visits. Overall, we estimate that costs per adjusted admission declined by 2–4% for all patients and about 6–8% for patients who would have been treated at the closed hospital. |
| doi_str_mv | 10.1016/S0167-6296(03)00060-2 |
| format | Article |
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Closure of a hospital other than the least efficient can be detrimental to social welfare because treatment costs will be higher at surviving hospitals. The results show that hospital closure has led to an evolutionary increase in efficiency in urban markets. The hospitals that closed were less efficient at baseline, and after closure their competitors realized lower costs per adjusted admission through an increase in inpatient admissions and emergency room visits. 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Closure of a hospital other than the least efficient can be detrimental to social welfare because treatment costs will be higher at surviving hospitals. The results show that hospital closure has led to an evolutionary increase in efficiency in urban markets. The hospitals that closed were less efficient at baseline, and after closure their competitors realized lower costs per adjusted admission through an increase in inpatient admissions and emergency room visits. Overall, we estimate that costs per adjusted admission declined by 2–4% for all patients and about 6–8% for patients who would have been treated at the closed hospital.</description><subject>Catchment Area (Health) - economics</subject><subject>Closure</subject><subject>Competition</subject><subject>Cost structure</subject><subject>Costs</subject><subject>Economic Competition</subject><subject>Economic efficiency</subject><subject>Economic impact</subject><subject>Economics</subject><subject>Efficiency</subject><subject>Efficiency, Organizational - statistics & numerical data</subject><subject>Efficiency, Organizational - trends</subject><subject>Emergency Service, Hospital - utilization</subject><subject>Exit</subject><subject>Health</subject><subject>Health administration</subject><subject>Health Care Sector</subject><subject>Health economics</subject><subject>Health Facility Closure - economics</subject><subject>Health Services Research</subject><subject>Hospital closure</subject><subject>Hospital competition</subject><subject>Hospital Costs - trends</subject><subject>Hospitals</subject><subject>Hospitals, Urban - economics</subject><subject>Hospitals, Urban - organization & administration</subject><subject>Hospitals, Urban - supply & distribution</subject><subject>Hospitals, Urban - utilization</subject><subject>Humans</subject><subject>Market</subject><subject>Models, Econometric</subject><subject>Patient Admission - economics</subject><subject>Patient Admission - trends</subject><subject>Shutdowns</subject><subject>Social Welfare</subject><subject>Studies</subject><subject>United States</subject><subject>Urban areas</subject><subject>USA</subject><issn>0167-6296</issn><issn>1879-1646</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2003</creationdate><recordtype>article</recordtype><sourceid>EIF</sourceid><sourceid>X2L</sourceid><sourceid>7QJ</sourceid><recordid>eNqFkU9P3DAQxS3Uqiy0HwEU9YDaQ2D8PzlVFSptERIH6Nly7Ik2SzYOdoLEt8fLrkDqZQ8z9uH3Rm_mEXJC4ZwCVRd3uelSsVp9A_4dABSU7IAsaKXrkiqhPpDFG3JIjlJaZQgkrz-RQ8pqoYQUC3Jxv8QC2xbdVIS2mGNjh2IZ0thNti9cH9IcsQhDsbbxAaf0mXxsbZ_wy-49Jv-uft1f_ilvbn__vfx5Uzqp66lsJDjgTFbeKWG1oJZVsnFCg6-cVG2N2nHBqGy9RMG0V9a2ovFUWAVec35MzrZzxxgeZ0yTWXfJYd_bAcOcjOYKJFRiLyg1KC2g2gvySgrOGM3g1__AVZjjkLc1DGTFeb51huQWcjGkFLE1Y-zyjZ4NBbMJyLwGZDbXN8DNa0CGZd31VhdxRPcmQsTVEl0YzJPhlrHcnjcfyFJuu1wy15hL1dRoysxyWudhpzunc7NG_25hF28GfmwBzFE9dRhNch0ODn0Xc-LGh26P3xd_qbXV</recordid><startdate>20030901</startdate><enddate>20030901</enddate><creator>Lindrooth, Richard C.</creator><creator>Lo Sasso, Anthony T.</creator><creator>Bazzoli, Gloria J.</creator><general>Elsevier B.V</general><general>Elsevier</general><general>Elsevier Sequoia S.A</general><scope>CGR</scope><scope>CUY</scope><scope>CVF</scope><scope>ECM</scope><scope>EIF</scope><scope>NPM</scope><scope>DKI</scope><scope>X2L</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>7QJ</scope><scope>7T2</scope><scope>8BJ</scope><scope>C1K</scope><scope>FQK</scope><scope>JBE</scope><scope>K9.</scope><scope>7X8</scope></search><sort><creationdate>20030901</creationdate><title>The effect of urban hospital closure on markets</title><author>Lindrooth, Richard C. ; 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| ispartof | Journal of health economics, 2003-09, Vol.22 (5), p.691-712 |
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| subjects | Catchment Area (Health) - economics Closure Competition Cost structure Costs Economic Competition Economic efficiency Economic impact Economics Efficiency Efficiency, Organizational - statistics & numerical data Efficiency, Organizational - trends Emergency Service, Hospital - utilization Exit Health Health administration Health Care Sector Health economics Health Facility Closure - economics Health Services Research Hospital closure Hospital competition Hospital Costs - trends Hospitals Hospitals, Urban - economics Hospitals, Urban - organization & administration Hospitals, Urban - supply & distribution Hospitals, Urban - utilization Humans Market Models, Econometric Patient Admission - economics Patient Admission - trends Shutdowns Social Welfare Studies United States Urban areas USA |
| title | The effect of urban hospital closure on markets |
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