The Effect of Hospital/Physician Integration on Hospital Choice

Laurence C. Baker, M. Kate Bundorf, Daniel P. Kessler

NBER Working Paper No. 21497
Issued in August 2015
NBER Program(s):Health Care

In this paper, we estimate how hospital ownership of physicians’ practices affects their patients’ hospital choices. We match data on the hospital admissions of Medicare beneficiaries, including the identity of their admitting physician, with data on the identity of the owner of the admitting physician’s practice. We find that a hospital's ownership of an admitting physician’s practice dramatically increases the probability that the physician's patients will choose the owning hospital. We also find that patients are more likely to choose a high-cost, low-quality hospital when their admitting physician’s practice is owned by that hospital.

You may purchase this paper on-line in .pdf format from ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.


The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w21497

Published: Laurence C. Baker & M. Kate Bundorf & Daniel P. Kessler, 2016. "The Effect of Hospital/Physician Integration on Hospital Choice," Journal of Health Economics, .

Users who downloaded this paper also downloaded* these:
Chen and Goldman w21501 Health Care Spending: Historical Trends and New Directions
Baker, Bundorf, and Kessler w21513 Does Health Plan Generosity Enhance Hospital Market Power?
Clemens, Gottlieb, and Laura Molnar w21642 The Anatomy of Physician Payments: Contracting Subject to Complexity
Currie, MacLeod, and Van Parys w21218 Physician Practice Style and Patient Health Outcomes: The Case of Heart Attacks
Layton, Ellis, and McGuire w21531 Assessing Incentives for Adverse Selection in Health Plan Payment Systems
NBER Videos

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email:

Contact Us