How costly is hospital quality? A revealed-preference approach.
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ABSTRACT:
SUBMITTER: Romley JA
PROVIDER: S-EPMC3989349 | biostudies-literature | 2011
REPOSITORIES: biostudies-literature
Publications
How costly is hospital quality? A revealed-preference approach.
Romley John A JA Goldman Dana P DP
The Journal of industrial economics 20110101 4
We analyze the cost of quality improvement in hospitals, dealing with two challenges. Hospital quality is multidimensional and hard to measure, while unobserved productivity may influence quality supply. We infer the quality of hospitals in Los Angeles from patient choices. We then incorporate ‘revealed quality’ into a cost function, instrumenting with hospital demand. We find that revealed quality differentiates hospitals, but is not strongly correlated with clinical quality. Revealed quality i ...[more]
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