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The Role of Hospital Networks in Individual Mortality

Author

Listed:
  • Buitrago, Giancarlo
  • Rodríguez-Lesmes, Paul
  • Serna, Natalia
  • Vera-Hernández, Marcos

Abstract

Narrow hospital networks have proliferated in health systems with managed care. We investigate the causal effect of network breadth on mortality leveraging the termination of the largest health insurer in Colombia. The termination caused a substantial increase in mortality accompanied by reductions in network breadth among incumbent insurers. We estimate that broad-network insurers reduce mortality because they steer patients to higher-quality providers and reduce hospital congestion. Results imply that patients should be reassigned to incumbent insurers based on the overlap of their network with the terminated insurer, and that policies requiring minimum network coverage are needed to maintain patient health.

Suggested Citation

  • Buitrago, Giancarlo & Rodríguez-Lesmes, Paul & Serna, Natalia & Vera-Hernández, Marcos, 2024. "The Role of Hospital Networks in Individual Mortality," CEPR Discussion Papers 19062, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:19062
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    References listed on IDEAS

    as
    1. Leemore Dafny & Igal Hendel & Nathan Wilson, 2015. "Narrow Networks on the Health Insurance Exchanges: What Do They Look Like and How Do They Affect Pricing? A Case Study of Texas," American Economic Review, American Economic Association, vol. 105(5), pages 110-114, May.
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    5. Jason Abaluck & Mauricio Caceres Bravo & Peter Hull: & Amanda Starc, 2021. "Mortality Effects and Choice Across Private Health Insurance Plans," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(3), pages 1557-1610.
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    More about this item

    Keywords

    Congestion; Health; Networks; Hospitals; Health insurance;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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