Hospital Specialization: Product-Line Planning During the Market Reformation.

Rational expectations theory dictates that firms respond to shifts in the demand function as a result of substantial reforms in the insurance marketplace. Federal health reform has enhanced the benefits of specialization. Hospital product-line specialization trends are studied using multiple regress...

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Publicado en:Journal of Health Care Finance Vol. 38; no. 1; pp. 71 - 83
Autor principal: Eastaugh, Steven R.
Formato: research tables/charts Journal Article
Publicado: Journal of Health Care Finance Fall2011
Acceso en línea:Ver este registro en EBSCOhost
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      pub: Journal of Health Care Finance
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        atl: Hospital Specialization: Product-Line Planning During the Market Reformation.
      aug:
        au: Eastaugh, Steven R.
        affil: Professor of Finance and Health Economics, Department of Health Services and Management, George Washington University, Washington, DC
      sug:
        subj:
          Specialization
          Health Facility Costs United States
          Insurance, Health, Reimbursement
          Health Facility Departments Economics
          Organizational Efficiency
          Health Care Reform Legislation and Jurisprudence
          Health Resource Allocation
          Multiple Regression
          Geographic Factors
          United States
          Diagnosis-Related Groups
          Cost Control
          Health Facility Charges
          Descriptive Statistics
          Case Mix
          Two-Tailed Test
          Cross Sectional Studies
          Length of Stay
          Profits
          Retrospective Design
      ab: Rational expectations theory dictates that firms respond to shifts in the demand function as a result of substantial reforms in the insurance marketplace. Federal health reform has enhanced the benefits of specialization. Hospital product-line specialization trends are studied using multiple regression analysis for the period 2001-2010. The observed 32.8 percent rise in specialization was associated with a 9.8 percent decline in unit cost per admission. The number of specialized hospitals has grown by 174 percent in the past decade. Other hospitals are getting more specialized by reducing their product lines. Specialization has been highest in competitive West Coast markets and lowest in the rate-regulated states (New York and Massachusetts). Hospitals have less incentive to contain costs by decreasing the array of services offered in stringent rate-setting states. The term "underspecialization" is advanced to capture the inability of some hospitals to selectively prune out product lines in order to specialize. Such hospitals spread resources so thinly that many good departments suffer. Unit cost per case (DRG-adjusted) is higher in the less specialized hospitals.
      pubtype: Academic Journal
      doctype:
        research
        tables/charts
        Journal Article
      ougenre: Article
    language: English
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