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Behavioural differences among hospitals: Is it ownership, or location?

Publication ,  Journal Article
Mobley, LR; Bradford, WD
Published in: Applied Economics
January 1, 1997

By about 1988, the consensus among leading health economists was that no meaningful differences existed among hospitals of different ownership form, and this position was embraced by the Antitrust Division of the US Department of Justice. But behavioural differences among hospitals of different ownership has continued to be a matter of both academic and judicial interest. Recent empirical studies have concluded that real differences do exist, while many earlier studies reached the opposite conclusion. This contradiction in findings over time, as competition intensified, is exactly opposite to what expense-preference theory would predict. We examine this apparent paradox, using a very general test of behavioural differences by hospital ownership. We find that the omission of location-specific variables can lead to biased estimates of ownership effects, and that no significant behavioural differences exist among private California hospitals in 1986-90, when this source of ownership endogeneity is eliminated.

Duke Scholars

Published In

Applied Economics

DOI

ISSN

0003-6846

Publication Date

January 1, 1997

Volume

29

Issue

9

Start / End Page

1125 / 1138

Related Subject Headings

  • Economics
  • 3802 Econometrics
  • 3801 Applied economics
  • 1502 Banking, Finance and Investment
  • 1403 Econometrics
  • 1402 Applied Economics
 

Citation

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Mobley, L. R., & Bradford, W. D. (1997). Behavioural differences among hospitals: Is it ownership, or location? Applied Economics, 29(9), 1125–1138. https://doi.org/10.1080/00036849700000003
Mobley, L. R., and W. D. Bradford. “Behavioural differences among hospitals: Is it ownership, or location?Applied Economics 29, no. 9 (January 1, 1997): 1125–38. https://doi.org/10.1080/00036849700000003.
Mobley LR, Bradford WD. Behavioural differences among hospitals: Is it ownership, or location? Applied Economics. 1997 Jan 1;29(9):1125–38.
Mobley, L. R., and W. D. Bradford. “Behavioural differences among hospitals: Is it ownership, or location?Applied Economics, vol. 29, no. 9, Jan. 1997, pp. 1125–38. Scopus, doi:10.1080/00036849700000003.
Mobley LR, Bradford WD. Behavioural differences among hospitals: Is it ownership, or location? Applied Economics. 1997 Jan 1;29(9):1125–1138.
Journal cover image

Published In

Applied Economics

DOI

ISSN

0003-6846

Publication Date

January 1, 1997

Volume

29

Issue

9

Start / End Page

1125 / 1138

Related Subject Headings

  • Economics
  • 3802 Econometrics
  • 3801 Applied economics
  • 1502 Banking, Finance and Investment
  • 1403 Econometrics
  • 1402 Applied Economics