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Market segmentation by profit status: evidence from hospice
David A Rosenkranz1, Lindsay White2, Chuxuan Sun3
1Department of Economics, Fordham University, 441 E Fordham Road, Dealy Hall, Bronx, NY 10458, United States.
Health Affairs Scholar
|December 16, 2024
Summary
For-profit hospice care programs enroll patients with specific conditions, leading to longer stays. This suggests patient selection, not just institutional barriers, drives hospice market segmentation.
Area of Science:
- Health Services Research
- Gerontology
- Health Economics
Background:
- The US hospice industry exhibits differences in patient populations between for-profit and non-profit providers.
- For-profit hospices serve more long-term care patients and those with Alzheimer's disease and related dementias.
Purpose of the Study:
- To investigate how referral networks and medical conditions influence patient care choices within the US hospice industry.
- To determine the factors contributing to market segmentation in hospice care.
Main Methods:
- Comparative analysis of hospice enrollment data.
- Statistical examination of patient characteristics and length-of-stay.
- Control for medical conditions, referral sources, and geographic factors.
Main Results:
- For-profit hospice enrollees experienced 23% longer lengths-of-stay compared to non-profit enrollees with similar conditions.
- Differences in end-of-life health care utilization were observed between for-profit and non-profit hospice patients.
Conclusions:
- Hospice market segmentation appears to be influenced by patient-specific selection mechanisms.
- Patient selection processes may operate independently of institutional barriers to hospice care access.
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