Hospital markups: responses to environmental pressures in Pennsylvania.
The practice of cost shifting has stirred interest in hospital pricing policy. This study examined the determinants of the markup ratio, a summary measure of the hospital's pricing policy, in Pennsylvania acute care hospitals. The results indicate that severity of illness and the proportion of revenue earned from Medicare and Medicaid were the most important factors influencing markups. Other significant factors included extensive teaching activities and county per capita income.
Rosko
M D
MD
School of Management, Widener University, Chester, PA 19013.
Carpenter
C E
CE
D002391:Catchment Area, Health / Q000191:economics*; D003361:Cost Allocation / Q000379:methods*; D005377:Financial Management, Hospital / Q000379:methods*; D006302:Health Services Research; D017722:Hospital Charges / Q000706:statistics & numerical data*; D016018:Least-Squares Analysis; D008484:Medicaid / Q000191:economics; D006278:Medicare / Q000191:economics; D010414:Pennsylvania; D011445:Prospective Payment System / Q000191:economics*; D012720:Severity of Illness Index; D017664:Uncompensated Care; D014481:United States