## Abstract This paper presents new estimates of scale economies for US hospitals. We show that the common translog specification of hospital costs is a misspecification, and employ nonparametric, local linear estimation with both continuous and discrete covariates. A bootstrap method is used to pr
Survivorship in the US hospital services industry
β Scribed by Rexford E. Santerre; Debra Pepper
- Publisher
- John Wiley and Sons
- Year
- 2000
- Tongue
- English
- Weight
- 74 KB
- Volume
- 21
- Category
- Article
- ISSN
- 0143-6570
- DOI
- 10.1002/mde.969
No coin nor oath required. For personal study only.
β¦ Synopsis
Abstract
Over the last two decades, changing state and federal regulations and increased price competition have dramatically changed the environment in which hospitals compete. This paper uses observations drawn at 5βyear intervals from 1973 to 1993 for each of the 50 states to examine the specific effect of these factors on the size distribution of hospitals. It finds that Certificate of Need (CON) laws and rate review regulations have tended to favor large hospitals. The paper also finds that hospitals have responded to increased payer price sensitivity by seeking a medium bedβsize capacity. Copyright Β© 2000 John Wiley & Sons, Ltd.
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