Skip to main content
Journal cover image

Prospective payments and hospital efficiency

Publication ,  Journal Article
Bradford, WD; Craycraft, C
Published in: Review of Industrial Organization
December 1, 1996

This paper examines the effects of the Prospective Payment System on the behavior of hospitals with respect to their capital allocations and the efficiency with which they produce in-patient care. A theoretical model adapted from Pope [1989] yields the testable hypotheses that as a hospital's Medicare population increases the hospital will supply greater levels of capital and produce in-patient care using less technically efficient methods. A two stage test of these hypotheses is run on a sample of US non-federal hospitals. Results from patient demand functions and a stochastic profit frontier are consistent with the theoretical model. © 1996 Kluwer Academic Publishers.

Duke Scholars

Published In

Review of Industrial Organization

ISSN

0889-938X

Publication Date

December 1, 1996

Volume

11

Issue

6

Start / End Page

791 / 809

Related Subject Headings

  • Economics
  • 3801 Applied economics
  • 1402 Applied Economics
 

Citation

APA
Chicago
ICMJE
MLA
NLM
Bradford, W. D., & Craycraft, C. (1996). Prospective payments and hospital efficiency. Review of Industrial Organization, 11(6), 791–809.
Bradford, W. D., and C. Craycraft. “Prospective payments and hospital efficiency.” Review of Industrial Organization 11, no. 6 (December 1, 1996): 791–809.
Bradford WD, Craycraft C. Prospective payments and hospital efficiency. Review of Industrial Organization. 1996 Dec 1;11(6):791–809.
Bradford, W. D., and C. Craycraft. “Prospective payments and hospital efficiency.” Review of Industrial Organization, vol. 11, no. 6, Dec. 1996, pp. 791–809.
Bradford WD, Craycraft C. Prospective payments and hospital efficiency. Review of Industrial Organization. 1996 Dec 1;11(6):791–809.
Journal cover image

Published In

Review of Industrial Organization

ISSN

0889-938X

Publication Date

December 1, 1996

Volume

11

Issue

6

Start / End Page

791 / 809

Related Subject Headings

  • Economics
  • 3801 Applied economics
  • 1402 Applied Economics