Global Health seminar - The Role of Hospital Networks in Individual Mortality

Event details

Abstract:

The effects of health insurance coverage on health have been widely studied, yet evidence on the aspects of insurance that matter for health outcomes is scant, particularly in contexts with private insurers. We leverage the abrupt exit of Colombia's largest health insurer to assess equilibrium effects on incumbent insurers' network of covered providers and patient mortality. This termination caused a 10% decrease in the breadth of provider networks and a 22% increase in mortality rates. We show two mechanisms drove the change in mortality: increased congestion stemming from the surge of enrollees at incumbent insurers and reduced provider network breadth. Insurers narrowed their networks by excluding providers that served sicker, more expensive patients. Findings suggest insurers play a key role in patient health through their provider networks.

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Speaker: Paul Rodriguez, School of Economics, Universidad del Rosario, Colombia