We study the exit of hospitals from the market for inpatient services. More generous hospital reimbursement significantly reduces the probability of exit throughout the 1990s. Conditional on reimbursement levels, hospital efficiency was not a significant determinant in the early 1990s but in the midto late 1990s, less efficient hospitals were significantly more likely to exit. Throughout the pe...

This paper analyses the design of hospital reimbursement in an industry with imperfect competition, scarcity of labour and socially costly government transfers. We find that hospital competition may increase both quantity and quality of hospital care, and if this is the case prospective payment has an unambigious positive effect on both quantity and quality. Hospitals may produce too little or ...

Hospitals in the U.S. increasingly belong to multihospital systems that operate in multiple geographic markets. A large literature in management and economics suggests that competition between firms may be softened as a result of multimarket contact – i.e., when firms compete with one another in several markets simultaneously. I test whether increases in multimarket contact over the 2000-2010 p...

The difficult current economic climate is riddled with change and uncertainty, and the hospital industry is not immune to the effects. In fact hospitals face an unprecedented series of challenges, including poor economic conditions, increasing competition, and greater reporting requirements. On top of these issues, the healthcare reform law looms, with a great deal of perplexity regarding its u...

We present a dynamic model of the hospital industry in which nonprofit and for-profit hospitals coexist and compete and are differentiated by their objective functions, investment technologies, and taxation rates. In our model, patients differ by income and type of insurance coverage, and choose admission to their preferred hospital, while hospitals choose investment, entry, exit, and pricing s...