Does competition from ambulatory surgical centers affect hospital surgical output?
This paper estimates the effect of ambulatory surgical centers (ASCs) on hospital surgical volume using hospital and year fixed effects models with several robustness checks. We show that ASC entry only appears to influence a hospital's outpatient surgical volume if the facilities are within a few miles of each other. Even then, the average reduction in hospital volume is only 2-4%, which is not nearly large enough to offset the new procedures performed by an entering ASC. The effect is, however, stronger for large ASCs and the first ASCs to enter a market. Additionally, we find no evidence that entering ASCs reduce a hospital's inpatient surgical volume.
Courtemanche
Charles
C
Department of Economics, University of North Carolina at Greensboro, Greensboro, NC 27402-6170, USA.
Plotzke
Michael
M
D004465:Economic Competition; D036262:Empirical Research; D019981:Health Care Sector; D006801:Humans; D010044:Outpatient Clinics, Hospital / Q000191:economics / Q000706:statistics & numerical data; D013503:Surgery Department, Hospital / Q000191:economics / Q000706:statistics & numerical data; D013531:Surgicenters / Q000191:economics* / Q000706:statistics & numerical data; D014481:United States