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Title
Do hospitals behave like consumers? An analysis of expenditures and revenues.
First Author
Peden, Edgar A
Date of Pub
1992 Winter
Pages
125-134
Volume
14
Issue
2
Other Authors
N/A
Abstract
Hospitals adjust expenditures to be a constant proportion of their revenues. An unexpected 10-percent change in hospital revenue generates a 3.5-4.8 percent expenditure change (in the same direction) the year it occurs, with declining changes thereafter (10 percent in total). Non-profit and government hospitals adjust expenditures about 80 percent of the way toward their longrun change near the end of the third year of the revenue change; for-profit hospitals do this at the end of the fourth year. Hospitals with revenue increases make an 80-percent adjustment toward the end of the third year; those with revenue declines do so near the end of the fourth year.
Abstract Continued
N/A
MeSH
Models, Econometric : Capital Expenditures/statistics & numerical data : Consumer Participation/economics : Financial Management, Hospital/statistics & numerical data : Income/statistics & numerical data : Medicare : Prospective Payment System : Regression Analysis : United States
NTIS Number
PB2001-105739