Has Price Competition Changed Hospital Revenues and Expenses in New York?
This study analyzes the factors that influenced hospital expenses and revenues prior to and following the enactment of the New York State Health Care Reform Act of 1996 (HCRA)—the period from 1994–1999. HCRA was expected to encourage price competition which in turn was anticipated to lower hospital...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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SAGE Publishing
2005-05-01
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| Series: | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| Online Access: | https://doi.org/10.5034/inquiryjrnl_42.2.183 |
| _version_ | 1818259320313217024 |
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| author | Jack Zwanziger Cathleen Mooney |
| author_facet | Jack Zwanziger Cathleen Mooney |
| author_sort | Jack Zwanziger |
| collection | DOAJ |
| description | This study analyzes the factors that influenced hospital expenses and revenues prior to and following the enactment of the New York State Health Care Reform Act of 1996 (HCRA)—the period from 1994–1999. HCRA was expected to encourage price competition which in turn was anticipated to lower hospital revenues and expenses. We measured the differential effects on hospital revenues and expenses in markets with varying degrees of competition. We also measured the relationship between hospital revenues and expenses and the increased concentration resulting from the formation of local hospital systems. We found that revenues and expenses both grew more slowly for hospitals located in more competitive markets; hospital systems that increased concentration tended to have higher revenues. In the short run at least, price competition induced by HCRA did constrain both hospital expense and revenue growth, although the increase in hospital mergers countered this trend. |
| first_indexed | 2024-12-12T18:13:34Z |
| format | Article |
| id | doaj.art-3ecb6a7997274a90a5dacae2955c805d |
| institution | Directory Open Access Journal |
| issn | 0046-9580 |
| language | English |
| last_indexed | 2024-12-12T18:13:34Z |
| publishDate | 2005-05-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| spelling | doaj.art-3ecb6a7997274a90a5dacae2955c805d2022-12-22T00:16:19ZengSAGE PublishingInquiry: The Journal of Health Care Organization, Provision, and Financing0046-95802005-05-014210.5034/inquiryjrnl_42.2.183Has Price Competition Changed Hospital Revenues and Expenses in New York?Jack ZwanzigerCathleen MooneyThis study analyzes the factors that influenced hospital expenses and revenues prior to and following the enactment of the New York State Health Care Reform Act of 1996 (HCRA)—the period from 1994–1999. HCRA was expected to encourage price competition which in turn was anticipated to lower hospital revenues and expenses. We measured the differential effects on hospital revenues and expenses in markets with varying degrees of competition. We also measured the relationship between hospital revenues and expenses and the increased concentration resulting from the formation of local hospital systems. We found that revenues and expenses both grew more slowly for hospitals located in more competitive markets; hospital systems that increased concentration tended to have higher revenues. In the short run at least, price competition induced by HCRA did constrain both hospital expense and revenue growth, although the increase in hospital mergers countered this trend.https://doi.org/10.5034/inquiryjrnl_42.2.183 |
| spellingShingle | Jack Zwanziger Cathleen Mooney Has Price Competition Changed Hospital Revenues and Expenses in New York? Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| title | Has Price Competition Changed Hospital Revenues and Expenses in New York? |
| title_full | Has Price Competition Changed Hospital Revenues and Expenses in New York? |
| title_fullStr | Has Price Competition Changed Hospital Revenues and Expenses in New York? |
| title_full_unstemmed | Has Price Competition Changed Hospital Revenues and Expenses in New York? |
| title_short | Has Price Competition Changed Hospital Revenues and Expenses in New York? |
| title_sort | has price competition changed hospital revenues and expenses in new york |
| url | https://doi.org/10.5034/inquiryjrnl_42.2.183 |
| work_keys_str_mv | AT jackzwanziger haspricecompetitionchangedhospitalrevenuesandexpensesinnewyork AT cathleenmooney haspricecompetitionchangedhospitalrevenuesandexpensesinnewyork |