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Broadband Internet access and health outcomes: Patient and provider responses in Medicare

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  • Van Parys, Jessica
  • Brown, Zach Y.

Abstract

High-speed internet has increased the amount of information available in health care markets. Online information may improve health outcomes if it reduces information frictions and helps patients choose higher quality providers or causes providers to improve quality. We examine how health outcomes for common procedures in Medicare changed after broadband internet rolled out across ZIP Codes from 1999 to 2008. Estimates imply that broadband expansion improved health outcomes by 5%. Broadband access primarily helped patients choose higher-quality providers; we also find some evidence that broadband improved provider quality. We use a structural model to decompose the improvements in patient outcomes over time. Counterfactual simulations imply that broadband roll-out was responsible for 16% of the improvement in outcomes by the end of the period.

Suggested Citation

  • Van Parys, Jessica & Brown, Zach Y., 2024. "Broadband Internet access and health outcomes: Patient and provider responses in Medicare," International Journal of Industrial Organization, Elsevier, vol. 95(C).
    • Handle: RePEc:eee:indorg:v:95:y:2024:i:c:s0167718724000274
    DOI: 10.1016/j.ijindorg.2024.103072
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    Keywords

    Broadband; Hospital competition; Quality competition; Information frictions;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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