Modern Management Practices and Hospital Admissions

K. John McConnell, Richard C. Lindrooth, Douglas R. Wholey, Thomas M. Maddox, Nick Bloom

Research output: Contribution to journalArticlepeer-review

33 Scopus citations

Abstract

We investigate whether the modern management practices and publicly reported performance measures are associated with choice of hospital for patients with acute myocardial infarction (AMI). We define and measure management practices at approximately half of US cardiac care units using a novel survey approach. A patient's choice of a hospital is modeled as a function of the hospital's performance on publicly reported quality measures and the quality of its management. The estimates, based on a grouped conditional logit specification, reveal that higher management scores and better performance on publicly reported quality measures are positively associated with hospital choice. Management practices appear to have a direct correlation with admissions for AMI - potentially through reputational effects - and indirect association, through better performance on publicly reported measures. Overall, a one standard deviation change in management practice scores is associated with an 8% increase in AMI admissions.

Original languageEnglish
Pages (from-to)470-485
Number of pages16
JournalHealth Economics (United Kingdom)
Volume25
Issue number4
DOIs
StatePublished - Apr 1 2016

Keywords

  • hospital markets
  • hospital quality
  • management
  • public reporting

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