Is the impact of managed care on hospital prices decreasing?

Journal of Health Economics
David DranoveJack Zwanziger

Abstract

Prior studies find that the growth of managed care through the early 1990s introduced a strong positive relationship between price and concentration in hospital markets. We hypothesize that the relaxation of constraints on consumer choice in response to a "managed care backlash" has diminished the price sensitivity of demand facing hospitals, reducing or possibly reversing the price-concentration relationship. We test this hypothesis by studying the price/concentration relationship for hospitals in California and Florida for selected years between 1990 and 2003, while addressing the potential endogeneity of concentration. We find an increasingly positive price/concentration in the 1990s with a peak occurring by 2001. Between 2001 and 2003, the growth in this relationship halts and possibly reverses.

References

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Citations

Jan 30, 2010·The European Journal of Health Economics : HEPAC : Health Economics in Prevention and Care·Eila KankaanpääHannu Valtonen
Jan 26, 2013·Health Economics, Policy, and Law·Christopher Garmon
Apr 5, 2000·AJR. American Journal of Roentgenology·H P FormanJ H Sunshine
Apr 18, 2002·AJR. American Journal of Roentgenology·Jean M Mitchell, Jonathan H Sunshine
Sep 28, 2014·BMC Health Services Research·Misja Mikkers, Padhraig Ryan
Feb 3, 2016·The European Journal of Health Economics : HEPAC : Health Economics in Prevention and Care·Y J F M Krabbe-AlkemadeM Lindeboom
Aug 8, 2015·Healthcare : the Journal of Delivery Science and Innovation·K John McConnellRichard C Lindrooth
Oct 1, 2010·Medical Care·Hsueh-Fen ChenJan P Clement
Sep 15, 2020·Journal of Healthcare Management / American College of Healthcare Executives·Timothy AtteberyRobert Weech-Maldonado

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