U.S. Hospital Industry Restructuring and the Hospital Safety Net

The U.S. hospital industry was reshaped during the 1990s, with many hospitals becoming members of health systems and networks. Our research examines whether safety net hospitals (SNHs) were generally included or excluded from these arrangements, and the factors associated with their involvement. Our...

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Main Authors: Gloria J. Bazzoli, Larry M. Manheim, Teresa M. Waters
Format: Article
Language:English
Published: SAGE Publishing 2003-02-01
Series:Inquiry: The Journal of Health Care Organization, Provision, and Financing
Online Access:https://doi.org/10.5034/inquiryjrnl_40.1.6
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author Gloria J. Bazzoli
Larry M. Manheim
Teresa M. Waters
author_facet Gloria J. Bazzoli
Larry M. Manheim
Teresa M. Waters
author_sort Gloria J. Bazzoli
collection DOAJ
description The U.S. hospital industry was reshaped during the 1990s, with many hospitals becoming members of health systems and networks. Our research examines whether safety net hospitals (SNHs) were generally included or excluded from these arrangements, and the factors associated with their involvement. Our analysis draws on the earlier work of Alexander and Morrisey (1988), and not only studies factors affecting SNH participation in multihospital arrangements but also updates their earlier study. We constructed measures for hospital market conditions, management, and mission, and examined network and system affiliation patterns between 1994 and 1998. Our findings suggest that larger and more technically advanced hospitals joined systems in the 1990s, which contrasts with 1980s findings that smaller, financially weak institutions joined systems. Further, SNH participation in networks and systems was more common when hospitals faced less market pressure and where only a limited number of unaffiliated hospitals remained. If networks and systems are key parties in negotiating with private payers, SNHs may be going it alone in these negotiations in highly competitive markets.
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spelling doaj.art-def7d562eda142ecb83947ecdcd3834f2022-12-22T00:46:02ZengSAGE PublishingInquiry: The Journal of Health Care Organization, Provision, and Financing0046-95802003-02-014010.5034/inquiryjrnl_40.1.6U.S. Hospital Industry Restructuring and the Hospital Safety NetGloria J. BazzoliLarry M. ManheimTeresa M. WatersThe U.S. hospital industry was reshaped during the 1990s, with many hospitals becoming members of health systems and networks. Our research examines whether safety net hospitals (SNHs) were generally included or excluded from these arrangements, and the factors associated with their involvement. Our analysis draws on the earlier work of Alexander and Morrisey (1988), and not only studies factors affecting SNH participation in multihospital arrangements but also updates their earlier study. We constructed measures for hospital market conditions, management, and mission, and examined network and system affiliation patterns between 1994 and 1998. Our findings suggest that larger and more technically advanced hospitals joined systems in the 1990s, which contrasts with 1980s findings that smaller, financially weak institutions joined systems. Further, SNH participation in networks and systems was more common when hospitals faced less market pressure and where only a limited number of unaffiliated hospitals remained. If networks and systems are key parties in negotiating with private payers, SNHs may be going it alone in these negotiations in highly competitive markets.https://doi.org/10.5034/inquiryjrnl_40.1.6
spellingShingle Gloria J. Bazzoli
Larry M. Manheim
Teresa M. Waters
U.S. Hospital Industry Restructuring and the Hospital Safety Net
Inquiry: The Journal of Health Care Organization, Provision, and Financing
title U.S. Hospital Industry Restructuring and the Hospital Safety Net
title_full U.S. Hospital Industry Restructuring and the Hospital Safety Net
title_fullStr U.S. Hospital Industry Restructuring and the Hospital Safety Net
title_full_unstemmed U.S. Hospital Industry Restructuring and the Hospital Safety Net
title_short U.S. Hospital Industry Restructuring and the Hospital Safety Net
title_sort u s hospital industry restructuring and the hospital safety net
url https://doi.org/10.5034/inquiryjrnl_40.1.6
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