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NBER Working Papers and Publications
|January 2003||HMO 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 2002||HMO 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.