Health Care Exceptionalism? Performance and Allocation in the US Health Care Sector
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aer.20151080.pdf
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Author(s)
Chandra, Amitabh
Finkelstein, Amy
Sacarny, Adam
Syverson, Chad
Date Issued
August 2016
Journal
American Economic Review
Publisher
American Economic Association
Citation
Chandra, Amitabh, Amy Finkelstein, Adam Sacarny, and Chad Syverson. “Health Care Exceptionalism? Performance and Allocation in the US Health Care Sector.” American Economic Review 106, no. 8 (August 2016): 2110–2144. © 2016 American Economic Association
Version
Final published version
Abstract
The conventional wisdom for the health care sector is that idiosyncratic features leave little scope for market forces to allocate consumers to higher performance producers. However, we find robust evidence across several different conditions and performance measures that higher quality hospitals have higher market shares and grow more over time. The relationship between performance and allocation is stronger among patients who have greater scope for hospital choice, suggesting that patient demand plays an important role in allocation. Our findings suggest that health care may have more in common with "traditional" sectors subject to market forces than often assumed.
MIT Department
Massachusetts Institute of Technology. Department of Economics
Terms of Use
Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.
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DOI of Published Version
https://doi.org/10.1257/AER.20151080
