Determinants of hospital wage inflation. Part 1. Effects of insurance, regulation, and other factors; Final report and executive summary. Part 2. Wage-setting in the hospital industry: Evidence from the 60's and the 70's; final report and executive summary
This study analyzes sources of growth in hospital costs and inputs from 1970-1975 using a data base of 1,228 nonfederal short-term hospitals. Factors affecting hospital labor market setting at various levels of aggregation are also discussed. The effects of a number of policy-relevant variables on hospital costs, inputs, labor composition, and wage dependent variables were studied. Regulatory programs had little effect on containing hospital costs and inputs; real wages of hospital employees declined in the 1970s; hospital worker quality increased considerably relative to other industries; and minimum wage legislation and unionization had a positive effect on hospital wages. Increased third party hospital reimbursement has led to growth in hospital inputs, wages, and costs.