Managed Care and the adoption of technology: The case of cardiac catheterization

Bokhari, Farasat (2009) Managed Care and the adoption of technology: The case of cardiac catheterization. International Journal of Industrial Organization, 27 (2). pp. 223-237. ISSN 0167-7187

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Abstract

The diffusion of health care technology is influenced by both the total market share of managed care organizations as well as the level of competition among them. This paper differentiates between HMO penetration and competition and examines their relationship to the adoption of cardiac catheterization laboratories in all non-federal, short-term general community hospitals in the U.S. between 1985 and 1995. Results show that a hospital is less likely to adopt the technology if HMO market penetration increases but more likely to adopt if HMO competition increases. Further, the latter effect is non-linear in the number of adopters. In markets where fewer than a critical number of neighboring hospitals have already adopted, the probability of adoption increases with the number of HMOs, but in markets where more than the critical number of neighbors have already adopted, the probability of adoption decreases with the number of HMOs. Thus, in markets where technology is rare, HMO penetration and competition have countervailing effects on the diffusion of technology such that the net effect could be small.

Item Type: Article
Faculty \ School: Faculty of Social Sciences > School of Economics
Related URLs:
Depositing User: Julie Frith
Date Deposited: 16 Jan 2013 16:24
Last Modified: 06 Nov 2018 15:36
URI: https://ueaeprints.uea.ac.uk/id/eprint/40803
DOI: 10.1016/j.ijindorg.2008.08.001

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