NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Michael Chu

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NBER Working Papers and Publications

January 2003HMO Penetration, Ownership Status, and the Rise of Hospital Advertising
with Jason Barro
in The Governance of Not-for-Profit Organizations, Edward L. Glaeser, editor
April 2002HMO Penetration, Ownership Status, and the Rise of Hospital Advertising
with Jason R. Barro: w8899
We examine the recent increase in hospital advertising expenditures. We first illustrate that the rise in hospital advertising has not been universal. Large, not-for-profit, teaching hospitals have, by far, experienced the largest increase in spending. Adjusting for size, for-profit hospitals over this period have actually decreased their marketing expenses. This increase in advertising spending is best explained by managed care penetration. There is a small and marginally significant relationship between increases in for-profit presence in hospital markets and an increase in advertising spending by the not-for-profit hospitals in those markets.

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