Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

How Do Hospitals Respond to Price Changes?

Leemore S. Dafny
The American Economic Review
Vol. 95, No. 5 (Dec., 2005), pp. 1525-1547
Stable URL: http://www.jstor.org/stable/4132763
Page Count: 23
  • Download ($10.00)
  • Subscribe ($19.50)
  • Cite this Item
How Do Hospitals Respond to Price Changes?
Preview not available

Abstract

This paper examines hospital responses to changes in diagnosis-specific prices by exploiting a 1988 policy reform that generated large price changes for 43 percent of Medicare admissions. I find hospitals responded primarily by "upcoding" patients to diagnosis codes with the largest price increases. This response was particularly strong among far-profit hospitals. I find little evidence hospitals increased the volume of admissions differentially for diagnoses subject to the largest price increases, despite the financial incentive to do so. Neither did they increase intensity or quality of care in these diagnoses, suggesting hospitals do not compete for patients at the diagnosis level.

Page Thumbnails

  • Thumbnail: Page 
1525
    1525
  • Thumbnail: Page 
1526
    1526
  • Thumbnail: Page 
1527
    1527
  • Thumbnail: Page 
1528
    1528
  • Thumbnail: Page 
1529
    1529
  • Thumbnail: Page 
1530
    1530
  • Thumbnail: Page 
1531
    1531
  • Thumbnail: Page 
1532
    1532
  • Thumbnail: Page 
1533
    1533
  • Thumbnail: Page 
1534
    1534
  • Thumbnail: Page 
1535
    1535
  • Thumbnail: Page 
1536
    1536
  • Thumbnail: Page 
1537
    1537
  • Thumbnail: Page 
1538
    1538
  • Thumbnail: Page 
1539
    1539
  • Thumbnail: Page 
1540
    1540
  • Thumbnail: Page 
1541
    1541
  • Thumbnail: Page 
1542
    1542
  • Thumbnail: Page 
1543
    1543
  • Thumbnail: Page 
1544
    1544
  • Thumbnail: Page 
1545
    1545
  • Thumbnail: Page 
1546
    1546
  • Thumbnail: Page 
1547
    1547