Strategic interaction among hospitals and nursing facilities: the efficiency effects of payment systems and vertical integration.

@article{Banks2001StrategicIA,
  title={Strategic interaction among hospitals and nursing facilities: the efficiency effects of payment systems and vertical integration.},
  author={David A. Banks and Elliott Parker and Jeanne Wendel},
  journal={Health economics},
  year={2001},
  volume={10 2},
  pages={119-34}
}
Rising post-acute care expenditures for Medicare transfer patients and increasing vertical integration between hospitals and nursing facilities raise questions about the links between payment system structure, the incentive for vertical integration and the impact on efficiency. In the United States, policy-makers are responding to these concerns by initiating prospective payments to nursing facilities, and are exploring the bundling of payments to hospitals. This paper develops a static profit… CONTINUE READING