American Economic Journal: Economic Policy
no. 3, August 2023
We measure organizational concentration—the distribution of a patient's health care across organizations—to examine how firm boundaries affect health care efficiency. First, when patients move to regions where outpatient visits are typically concentrated within a small set of firms, their health care utilization falls. Second, for patients whose primary care providers (PCPs) exit the market, switching to a PCP with 1 standard deviation higher organizational concentration reduces utilization by 21 percent. This finding is robust to controlling for the spread of health care across providers. Increases in organizational concentration predict improvements in diabetes care and are not associated with greater use of emergency department or inpatient care.
Agha, Leila, Keith Marzilli Ericson, and Xiaoxi Zhao.
"The Impact of Organizational Boundaries on Health Care Coordination and Utilization."
American Economic Journal: Economic Policy,
Firm Behavior: Empirical Analysis
Organizational Behavior; Transaction Costs; Property Rights
Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
Analysis of Health Care Markets
Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination
Other Spatial Production and Pricing Analysis