Service patterns in local hospital markets: complementarity or medical arms race?

RG Hughes, HS Luft - Health Services Management …, 1991 - journals.sagepub.com
RG Hughes, HS Luft
Health Services Management Research, 1991journals.sagepub.com
In this paper we investigate how the availability of selected services in individual hospitals is
influenced by the number of neighbors who are potential or actual competitors. Hospitals
offer a wide range of services, and some services may display a complementary pattern
while others may contribute to a competitive medical arms race. We will examine the types of
services that show these opposite patterns to analyze the dynamics that have characterized
local hospital service decisions.
In this paper we investigate how the availability of selected services in individual hospitals is influenced by the number of neighbors who are potential or actual competitors. Hospitals offer a wide range of services, and some services may display a complementary pattern while others may contribute to a competitive medical arms race. We will examine the types of services that show these opposite patterns to analyze the dynamics that have characterized local hospital service decisions.
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