The Effect of Hospital/Physician Integration on Hospital Choice
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.
We would like to thank Aileen Devlin for exceptional research assistance. All errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Laurence C. Baker
Baker has served as a consultant to Kaiser Permanente and as an expert in litigation matters involving health insurers and health care providers.Daniel P. Kessler
Financial support for the proposed research was from Stanford University. In the last three years, I have received speaking and consulting fees from AHIP, United HealthCare, Vhi Healthcare, Sutter Health, and other integrated delivery systems. I have received grant support from the AHIP Foundation.
Laurence C. Baker & M. Kate Bundorf & Daniel P. Kessler, 2016. "The Effect of Hospital/Physician Integration on Hospital Choice," Journal of Health Economics, .