Hospital Choice Models: A Review and Assessment of their Utility for Policy Impact Analysis

Abstract

The changing competitive hospital environment and recent greater availability of patient origin data have stimulated an increased research interest in factors influencing the reason patients are admitted to one hospital over another. Hospital marketers and managed care planners seek information for attracting patients and for negotiating hospital provider networks, respectively. Hospital choice models can help regulators make better informed assessments of the welfare implications of proposed mergers or closures. The literature shows the development of increasingly sophisticated models and techniques for analysis of hospital choice. Recent studies have also related the findings to health policy issues. This review summarizes the historical developments and the cumulative knowledge gained about hospital choice to date, identifies some key issues in need of greater attention, and assesses the potential strengths and limitations of contemporary choice models for making policy impact assessments.