The impact of the Medicare Rural Hospital Flexibility Program on patient choice

B-Tier
Journal: International Journal of Industrial Organization
Year: 2011
Volume: 29
Issue: 3
Pages: 342-344

Authors (4)

Gowrisankaran, Gautam (not in RePEc) Lucarelli, Claudio (not in RePEc) Schmidt-Dengler, Philipp (Universität Wien) Town, Robert (University of Texas-Austin)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper seeks to understand the impact of the Medicare Rural Hospital Flexibility (Flex) Program on rural resident hospital choice. The program created a new class of hospital, the Critical Access Hospital (CAH), which receives more generous reimbursement in return for limiting its beds and services. The program's goal is to maintain access to hospital care. Estimates from a patient choice model show that patient utility from visiting a hospital was negatively affected by conversion. While the lower bed capacity appears to play a minor role, the reduction in services results in a 28% drop in admission rates.

Technical Details

RePEc Handle
repec:eee:indorg:v:29:y:2011:i:3:p:342-344
Journal Field
Industrial Organization
Author Count
4
Added to Database
2026-01-29