TY  - RPRT
        AU  - Salm, Martin
AU  - Wübker, Ansgar
        TI  - Do Hospitals Respond to Increasing Prices by Supplying Fewer Services?
        PY  - 2015/Jul/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9229
        UR  - https://www.iza.org/index.php/publications/dp9229
        AB  - Medical providers often have a significant influence on treatment decisions which they can use in their own financial interest. Classical models of supplier-induced demand predict that medical providers will supply fewer services if they face increasing prices. We test this prediction based on a reform of hospital financing in Germany. Uniquely, this reform changed the overall level of reimbursement – with increasing prices for some hospitals and decreasing prices for others – without affecting the relative prices for different types of patients. Based on administrative data, we find that hospitals do indeed react to increasing prices by reducing service supply.
        KW  - physician-induced demand
KW  - hospital care
KW  - prospective payment
        ER  -