Market and organizational factors associated with hospital vertical integration into sub-acute care

Background: Changes in payment models incentivize hospitals to vertically integrate into sub-acute care (SAC) services. Through vertical integration into SAC, hospitals have the potential to reduce the transaction costs associated with moving patients throughout the care continuum and reduce the likelihood that patients will be readmitted. Purpose: The purpose of this study is to examine the correlates of hospital vertical integration into SAC. Methodology/Approach: Using panel data of U.S. acute care hospitals (2008–2012), we conducted logit regression models to examine environmental and organizational factors associated with hospital vertical integration. Results are reported as average marginal effects. Findings: Among 3,775 unique hospitals (16,269 hospital-year observations), 25.7% vertically integrated into skilled nursing facilities during at least 1 year of the study period. One measure of complexity, the availability of skilled nursing facilities in a county (ME = −1.780, p
Source: Health Care Management Review - Category: American Health Tags: Features Source Type: research