Which hospitals give discounts? The role of institutional and environmental factors.
Offering discounts on list prices in exchange for a large volume of business is a common practice in the healthcare industry. However, little is known about the characteristics of hospitals that engage in this practice or about the circumstances that promote this strategy. On the basis of data from the American Hospital Association and the Centers for Medicare and Medicaid Services, the authors reveal that hospital size, Medicare patient volume, net income, medical school affiliation, location in a metropolitan statistical area, and hospital system membership are factors positively linked with the amount of discounts provided by hospitals to third-party payers.
Khaliq
Amir A
AA
Department of Health Administration and Policy, University of Oklahoma Health Sciences Center, College of Public Health, Oklahoma City, USA.
Walston
Stephen L
SL
D000573:American Hospital Association; D014487:Centers for Medicare and Medicaid Services, U.S.; D016208:Databases, Factual; D004465:Economic Competition; D005377:Financial Management, Hospital / Q000379:methods*; D019538:Health Care Surveys; D017722:Hospital Charges; D007349:Insurance, Health, Reimbursement; D007350:Insurance, Hospitalization; D014481:United States; D014600:Utilization Review / Q000191:economics*