Hospitals' vertical integration into skilled nursing: a rational approach to controlling transaction costs.
Using 1985 and 1988 American Hospital Association data, this study examines 1,523 hospitals nationwide and concludes that hospitals' ownership of skilled nursing facilities helps minimize the transaction costs associated with post-acute patient transfers while productively using empty hospital beds. Unfortunately, such ownership creates complex cost, quality, and accessibility trade-offs in terms of the skilled nursing care provided.
Lehrman
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S
Graduate Management Institute, Lamont House Graduate Center, Union College, Schenectady, NY 12308-3151, USA.
Shore
K K
KK
D000573:American Hospital Association; D003363:Cost Control; D017046:Cost Savings; D019033:Delivery of Health Care, Integrated / Q000458:organization & administration*; D006302:Health Services Research; D006754:Hospital Restructuring / Q000191:economics*; D006801:Humans; D016015:Logistic Models; D016344:Medicare Part A; D017059:Models, Econometric; D010067:Ownership / Q000458:organization & administration*; D010360:Patient Transfer / Q000458:organization & administration*; D011445:Prospective Payment System; D012866:Skilled Nursing Facilities / Q000458:organization & administration*; D019467:Subacute Care / Q000458:organization & administration; D014481:United States