Affiliation:
1. Pennsylvania State University , USA
2. Columbia Business School , USA
3. University of Tennessee , USA
Abstract
Abstract
We study financial effects of remote product delivery in the healthcare industry. Exploiting staggered law adoption for identification, we find that telehealth provision redistributes hospital operations and access to capital away from rural communities. As urban telehealth providers acquire rural patients, rural hospitals experience decreased revenue and profit, credit rating downgrades, increased cost of capital, and ultimately risk of closure. Although telehealth reduces travel costs, some communities lose access to acute care. Overall, we conclude that remote healthcare services have financial consequences as well as real effects, and their benefits are unequally distributed.
Funder
National Center for Health Statistics
NCHS Data Use
IBM Marketscan
Douglas Leslie and Guodong Liu from Penn State College of Medicine
Publisher
Oxford University Press (OUP)
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