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Are Big Hospitals the Best Medicine

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  • F. Patrick Hallagan

Abstract

Article empirically examines the question of the existence and magnitude of economies of scale in the provision of hospital services. A variety of econometric techniques are employed to statistically estimate structural and behavioral cost functions from disaggregated state data. Implications for antitrust policy are discussed.

Suggested Citation

  • F. Patrick Hallagan, 1996. "Are Big Hospitals the Best Medicine," The American Economist, Sage Publications, vol. 40(1), pages 31-39, March.
    • Handle: RePEc:sae:amerec:v:40:y:1996:i:1:p:31-39
    DOI: 10.1177/056943459604000105
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    References listed on IDEAS

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    1. Fournier, Gary M & Mitchell, Jean M, 1992. "Hospital Costs and Competition for Services: A Multiproduct Analysis," The Review of Economics and Statistics, MIT Press, vol. 74(4), pages 627-634, November.
    2. Vitaliano, Donald F., 1987. "On the estimation of hospital cost functions," Journal of Health Economics, Elsevier, vol. 6(4), pages 305-318, December.
    3. Nett, Lorenz, 1992. "Negative effects of competition in a medical-service market," Economics Letters, Elsevier, vol. 40(4), pages 481-485, December.
    4. Tatchell, Michael, 1983. "Measuring hospital output: A review of the service mix and case mix approaches," Social Science & Medicine, Elsevier, vol. 17(13), pages 871-883, January.
    5. Vita, Michael G., 1990. "Exploring hospital production relationships with flexible functional forms," Journal of Health Economics, Elsevier, vol. 9(1), pages 1-21, June.
    6. Woolley, J. Michael, 1989. "The competitive effects of horizontal mergers in the hospital industry," Journal of Health Economics, Elsevier, vol. 8(3), pages 271-291, December.
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