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The impact of the medicare rural hospital flexibility program on patient choice

Gowrisankaran, Gautam, Lucarelli, Claudio, Schmidt-Dengler, Philipp and Town, Robert (2011) The impact of the medicare rural hospital flexibility program on patient choice. International Journal of Industrial Organization, 29 (3). pp. 342-344. ISSN 0167-7187

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Identification Number: 10.1016/j.ijindorg.2011.01.003


This paper seeks to understand the impact of the Medicare Rural Hospital Flexibility (Flex) Program on rural resident hospital choice. The program created a new class of hospital, the Critical Access Hospital (CAN), which receives more generous reimbursement in return for limiting its beds and services. The program's goal is to maintain access to hospital care. Estimates from a patient choice model show that patient utility from visiting a hospital was negatively affected by conversion. While the lower bed capacity appears to play a minor role, the reduction in services results in a 28% drop in admission rates.

Item Type: Article
Official URL:
Additional Information: © 2011 Elsevier B.V.
Divisions: Economics
Subjects: H Social Sciences > HV Social pathology. Social and public welfare. Criminology
R Medicine > RA Public aspects of medicine
Sets: Departments > Economics
Date Deposited: 29 Jun 2011 13:55
Last Modified: 20 Jul 2021 00:52

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